The South Korean government is set to make a promise to launch a new regulator that will govern the crypto sector in the country following what it calls the “Terra Incident (LUNAC).”
As reported at the end of May, the body is slated to be named the Digital Assets Commission (literal translation from English) and its creation has been fast-tracked.
The Commission will liaise with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), Korea’s main financial regulators. Currently, the Financial Intelligence Unit (FIU), an arm of the FSC, manages cryptocurrency exchanges. It’s unclear whether the new committee will eventually take over the role, but its first duties will almost certainly involve policy creation.
Chosun Ilbo reports that the committee is on track to kick off “before the end of the month” and revealed that many founding members have been appointed.
These are said to include Ju Hyun-cheol, a lawyer who previously worked on cryptocurrency policy for the office of President Yoon Seok-youl. According to the report, sitting on the committee will be Kim Gap-rae, a senior research fellow at the Capital Market Research Institute, as well as Park Seon-yeong, Professor of Economics at Dongguk University in Seoul.
Yoon made a series of crypto-related pledges in the run-up to his election earlier this year and shortly after taking power. And the commission will be tasked with turning those commitments into law. At the heart of these pledges is a pledge to create the nation’s first dedicated cryptocurrency-related legislation. Yoon is also committed to driving growth in the cryptocurrency sector – while ensuring a tighter level of investor protection.
However, despite previous claims that the new commission will operate independently of the FSC and FSS, it appears that initially, at least, this will not be the case.
The FSC will oversee the formation of the Digital Assets Commission, which will report to the FSC – just like the FIU currently does.
In the long run, however, Seoul thinks the new regulator is doing it on its own.
An unnamed government source close to the matter was quoted as saying that “as the cryptocurrency market develops”, it is likely that the agency will leave the oversight of the FSC and become a reporting agency. reports directly to the offices of the President.