Following the recent shockwaves from the (LUNA) crash that rocked the spirits of many cryptocurrency enthusiasts, South Korea’s ruling party, the People’s Power Party (PPP), is considering new cryptocurrency laws to ensure the protection of cryptocurrencies. users and prevent the same incident from happening again.
Some new crypto laws come with blockchain platforms that are still being considered. However, not much information has been published about these proposed laws.
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Speaking at a party meeting on digital assets on Monday, top policymaker Rep. Sung Il-jong added, “We are thinking of making a law on blockchain-based platforms.”
In fact, the South Korean government has been a strict nation and has previously imposed tightening policies for the cryptocurrency industry; Officials showed intentions to legislate differently to better protect users from excessive market volatility.
Heading to the part of the special law on financial transactions to monitor terrorist financing and prevent money laundering, Sung added, “Some parts are mentioned in the special financial transaction law, but it is generally not organized.”
Lee Bok-Hyun, head of the Financial Supervisory Service (FSS), which works in collaboration with the ruling party under the Financial Services Commission (FSC) to monitor financial institutions, called for a voluntary regulatory body and commented;
For the virtual asset market to grow responsibly, it is important to establish a reasonable regulatory system. But considering its complexity and unpredictable environment, the establishment of a voluntary regulatory system through the active participation of private experts should be emphasized.
The officials are actually trying to establish standards for inclusion and exclusion of a coin and coming up with a trading warning system. Additionally, they would include a policy to perform periodic risk assessment and provide this insights gained to the crypto community.
South Korean Authorities Investigate Crypto Firms
TerraUSD’s May Crash activated the probe on many crypto platforms in South Korea. Similarly, he prompted regulators to take action as the cryptocurrency market is still going strong and posted significant lows that discourage investors.
On May 28, a local tv channel JBTC reported that the government authority FSS, which works under the FSC, has started investigating payment gateway services operating in the country. Similarly, the Commission found only six payment channels supporting digital transfers from 157 platforms.
Fledgling coin Bitcoin, which decides the price of other pegged coins, had declined 47% since May 5, against its previous mark of $40,000 when stablecoin TerraUSD and its sister token Luna crashed.
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With the crypto market experiencing a long-running downtrend, virtual asset prices have been at their lowest since December 2021. At the time of writing, the price of Bitcoin has declined over 25% in the last seven days, falling almost 8% in one day. The BTC price is currently hovering above $22,000.
According to statistics provided by the Financial Services Commission (FSC), the state’s crypto market is valued at 55.2 trillion won ($42.9 billion). Similarly, its estimated daily trading volume is around 11.3 trillion won.
Featured image from Pixabay and chart from TradingView.com