The world's first cryptopolice to start operating in June

South Korea accelerated the creation of a Digital Assets Committee after the recent collapse of UST and LUNA tokens
The world's first cryptopolice to start operating in June

The Digital Assets Committee, the world’s first ministerial-level regulator, will begin work in June. The South Korean government will accelerate the launch of a new body to oversee the crypto sector as a direct response to the UST and LUNA incident.

The committee will operate separately from the existing Financial Services Committee (FSC) and Financial Supervisory Service (FSS), the country’s two main financial regulators. The FSC deals with the sector as a whole and helps shape policy, while the FSS monitors crypto exchanges.

On May 31, the government will expand and reorganize the current branches of government agencies within the Digital Assets Committee, the media reported, citing sources.

“The work of the Digital Assets Committee will begin as soon as the new chairman of the Financial Services Commission is inaugurated,” said a ruling party official.

The committee will be one of the first specialized crypto-regulatory bodies in the world and will take sole responsibility for overseeing the entire sector, although the transfer of authority from the FSC and FIU will be phased in.

Last week, the country’s top five exchanges – Upbit, Bithumb, Coinone, Korbit and Gopax – announced that they were forming a joint response council following the collapse of LUNA. Party sources said the board will likely be consulted by this new body in some capacity.

The collapse of USTΠ‘ (formerly UST), the third-largest Stablecoin backed by Terra Blockchain, began on May 8. The cryptocurrency lost its peg to the U.S. dollar after a one-time sale of about $300 million worth of tokens. The current price of the stabelcoin is about $0.03.

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