South Korean Government Calls for Voluntary Regulations From Crypto Industry

Monday saw representatives of the South Korean government meeting with the People Power Party to discuss issues relating to crypto space. These consultations took place in the wake of last month’s collapse of the terrausd UST algorithmic stablecoin (UST) and its sister coin terra LUNA (LUNA), which affected many South Koreans.

Arirang revealed that Korean lawmakers and officials are considering a new law to protect investors and prevent such crashes. They urge the crypto industry also to develop its own regulations, which would include safety mechanisms.

According to the English-language TV channel, South Korea’s cryptocurrency assets market was valued at 55.2 trillion Korean won (or around $43 billion) at the time of writing. The rapid growth of the market over the last few years is evident in the fact that 24 licensed cryptocurrency exchanges in South Korea process an average daily transaction volume of 11.3 trillion won (over 8.7 billion).

However, South Korean authorities believe that the current regulations are inadequate to deal with rapid expansion. The government of South Korea and the country’s most powerful political force have called on the sector for ‘voluntary regulatory actions’. Meanwhile, many countries are looking at the effects of digital currencies on their economic policies and financial systems.

Arirang said that more than a dozen crypto-related bills were pending in Korea’s National Assembly. The country’s Financial Services Commission plans to introduce additional legislation to protect investors from the volatility of the crypto market.

Lee Bok-hyun, Governor of Financial Supervisory Service, was quoted as stating that he believes a fair regulation system is necessary. This would enable the crypto asset market to experience responsible growth, he said.