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After the sharp fall in the stablecoin Terra UST last month, there has been an increased demand for regulations in the crypto segment in many countries. Korea’s Financial Regulator, the Financial Supervisory Service (FSS), has decided to tighten the monitoring of popular virtual assets and analyze the risks associated with them.
The South Korean government has been thinking about which regulatory agency should be in charge of the crypto market for a while. Along with other responsibilities, the Financial Supervisory Service (FSS) will also analyse the impact of past measures such as an Act to impose restrictions on cryptocurrency exchanges.
Do Kwon, the co-founder of Terraform Labs, may also face legal proceedings in South Korea. The ruling party in South Korea have apparently created a new Digital Asset Committee. The authorities also need to make up their minds about the industry’s involvement in digital assets. They’ll be responsible for drafting relevant regulations for this part of the tech world. The monitoring of the crypto industry will be tightened through this committee under the FSS. Preparations are also being made to impose a 20% tax on profits from crypto transactions in South Korea. This tax will apply to those who make more than 2.5 crore per year.