- A new law on “blockchain-based platforms” is currently under consideration, but little detail is given.
- Self-regulatory bodies that monitor market conditions and compliance are also being considered.
South Korea’s ruling party has reportedly shaken confidence in the transmission of large-scale cryptocurrencies and is considering new measures in the spirit of consumer protection in the wake of the recent frowned market turmoil.
Rep. Song Il-jung, chief policymaker for the People Power Party (PPP), will introduce a “blockchain-based platform” law on Monday to better protect investors without revealing plans accurately. He said he was considering that.
The minister announced his intentions at the party’s government council on digital assets on Monday.
Sung with hints to the parts that are already included Special Financial Instruments and Exchange Act – This is trying to regulate money laundering and terrorist financing – but said the law is not organized to specifically deal with cryptocurrencies, Yonhap News Agency reported..
PPP and its Integrated Financial Supervisory Service (FSS), which oversee financial institutions under the direct supervision of the Financial Services Commission, will also begin to establish a self-regulatory system.
Five of the country’s top exchanges, including Upbit, Korbit, Bithumb, Coinone and Gopax, have set up a joint advisory body to raise their hands during the meeting to monitor compliance with new and existing rules.
The potential for new measures comes shortly after the collapse of Terra USD, where fear seized control of the crypto market and caused a shock wave across the digital asset sector in May. Prompted regulatory agency Act.
The ruling party’s review will also take place when cryptocurrency lender Celsius announces that it will suspend withdrawals and transfers from the platform.Extreme market conditions.. “
“Concerns about Celsius’ solvency peaked and the platform responded by suspending the withdrawal,” Bybit Nathan Thompson’s lead technical writer told Blockworks Monday. But users who don’t have access to their money are, of course, upset. “
In both cases Fear of spillover Certain sectors of crypto, including DeFi and Stablecoin, are creating additional sell-side pressure in an already distressed environment.
Bitcoin, which typically acts as a barometer of market health, continues to fall, down 47% from about $ 40,000, when tweets about the end of Terra began to coalesce on May 5.
Cryptocurrency prices are currently the lowest since December 2020, and investors need to stop losses and settle into a potentially protracted bear market. Bitcoin was last seen to change trading at $ 21,500, down about 35% in seven days, exchange data show.
With Newly elected The Government of South Korea has embarked on reforming many of its existing fiscal and economic policies, including its approach to digital assets. It is under these market conditions and election promises that both PPP and FSS in South Korea justified further tightening of regulations.
If the crypto market is experiencing “responsible growth,” establishing a regulatory system to oversee them is a key factor, FFS chief Lee Bok-hyun said Monday.
Given the complex and unpredictable nature of cryptography, the chief added that it is also necessary to consider establishing a self-regulatory system with the participation of “private experts.”
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