The South Korean government will start up a virtual asset control tower in June.

The People’s Power Party (PPP), which is in power in South Korea, is making plans to set up a Digital Assets Committee (DAC) at the beginning of June 2022. This was reported by a Korean news organization on Tuesday, May 31, 2022.

According to the report, the DAC will be the industry’s control tower for making policies and keeping an eye on things. The committee will continue to be in charge until the Digital Assets Framework Act is signed into law and a separate government agency is set up.

The terrible collapse of Terra (LUNA) earlier this month caused the Korean government to set up a regulatory body for cryptocurrencies. Two Koreans, Daniel Shin and Do Kwon came up with the idea for the Terra ecosystem, which was a new piece of technology. Investors are said to have lost more than $60 billion because of the crash.

The Digital Assets Committee will start up right away after the new head of the Financial Services Commission is sworn in. The party quickly set up the Digital Assets Committee because the Luna-Tera crash made it clear that the virtual asset industry needed a reliable control tower to speak for it.

A professor at Dongguk University’s Graduate School of International Information Security and member of the Special Committee on Virtual Assets said that more than 11.3 trillion Korean won’s worth of virtual assets are traded every day. So, a commodity with the same number of trades as the average number of trades on the KOSDAQ each day should have a system to protect investors from crashes.

The commission will make rules for things like screening criteria for crypto listings, market monitoring, monitoring for unfair trade, a disclosure system, measures to protect investors, etc.

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