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In a bid to avoid further incidents like the Terra crash, South Korean officials are looking to build tougher legislation around cryptocurrencies.
The recent Terra UST and LUNA collapse has raised calls for much need regulations over digital assets around the globe. Senior officials in the United States and Europe have noted the need for more regulations around cryptocurrencies.
Investors lost over $39 bln in Terra crash
As per reports, the South Korean National assembly is planning to discuss the Crypto related issues during the enactment of the “Virtual Property Industry Act”. At the request of the National assembly, the Financial Services Commission conduct broad research on the matter. However, the expectations are that the proposed report will lead to the structuring of the virtual asset act.
The report includes that regulation over stablecoins is very important. The recent example of Terra’s UST crash has gained the interest of regulators around the world. UST which was meant to be pegged by the dollar value crashed down to trade at $0.095. As per the report, over 200K investors lost more than 50 trillion won (approx $39.4 billion) in the Luna Crash.
13 bills aim to curb “unfair” crypto trading
Around 13 bills related to the cryptocurrency proposed in the South Korean Assembly will be part of the legislative dialogue. The submitted report includes the regulation against unfair trade, undisclosed information and price manipulation in the crypto market. The illegal trading and other unfair means will carry the punishment against them. The sanctions will include fines, imprisonment, seizure and other penalisation.