S Korean Regulators Draft New Crypto Laws – to Prevent More FTX and Terra ‘Incidents’
Financial regulators in South Korea want to impose a raft of new crypto-related laws – in a direct response to the collapse of the FTX crypto exchange and the implosion of Terra ecosystem coins in May.
Thus far, most South Korean crypto exchanges have been left relatively unscathed by the FTX fallout – with the exception of Gopax, which had offered customers access to defi services in conjunction with a Digital Currency Group-affiliated company.
But the collapse of Terra coins – and the subsequent failure to arrest Terraform Labs’ missing co-founder Do Kwon – had already led politicians to call for more regulations. The fall of FTX has since seen regulators step up their calls for change. And the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) now want to fast-track their efforts on this front.
Jose Ilbo, News1, and Yonhap all outlined various plans highlighted by the FSC and the FSS at meetings held in the past few days. These include the following:
Furthermore, regulator-led probes have also found that domestic crypto exchanges have some degree of exposure to the FTX collapse via the FTT token, finding that platforms hold or have held some “$1.5 million” worth of FTT.
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