World’s First Crypto Police to Start Work in June

ust luna collapse
The Digital Asset Committee is one of the world’s first specialized state agencies in the crypto sphere. In other words, it is meant to be the world’s first crypto police. Source: The Fifth Skill News

After the recent UST and LUNA tokens collapse, the government of South Korea expedited the establishment of a new specialized organization for crypto regulation. The Digital Asset Committee is likely to be the world’s first ministry-level crypto regulatory body. According to a report by newspim.com, the Committee will begin its work in June. The South Korean Government wants to expedite its establishment as a response to the UST and LUNA token incident that took place in May.

The new committee will be an independent regulatory body focusing exclusively on the crypto sector. It is expected to operate independently from Korea’s two existing finance regulators, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS). The FSC’s area of responsibility lies in shaping the financial policy in general, while the FSS is the country’s crypto exchange legal regulator.

According to the statement of the governing Toburo Democratic Party, the Committee’s work shall begin right after the inauguration of the new Chairman for the FSC. This happened on May 31 — on that day the Korean Government approved the expansion and reorganization of the departments and bodies of the newly created Committee.

The Digital Asset Committee is one of the world’s first specialized state agencies in the crypto sphere. In other words, it is meant to be the world’s first crypto police. Its area of responsibility shall cover the entire cryptocurrency sector. After the UST and LUNA incident, five of Korea’s leading stock markets declared the formation of a joint reaction council. The newly created Digital Asset Committee is believed to turn to the council for consulting on certain issues.

 

The UST stablecoin collapse began on May 8, leading the entire crypto market into turmoil. After selling $300 mln worth of tokens, the Terra Blockchain-supported currency lost the US dollar peg. When the first problems began, the Terra algorithm rushed to issue new LUNA tokens. LUNA is supposed to ensure UST’s stability, but with 6.9 trln tokens issued up to the point, it lost its value and the price dropped 1.2 million-fold to staggering $0.0001. As of June 1, UST is worth around $0.021.