According to leaked documents, the South Korean government plans to introduce a cryptographic framework in 2023, with implementation expected in 2024. Details on the framework are lacking, but the focus is on investor protection.
According to leaked documents, the South Korean government is planning an extensive cryptocurrency regulatory framework called the “Digital Asset Framework Act” by 2024. local press. The government is also planning to review the central bank’s central bank digital currency (CBDC).
The report suggests that creating cryptocurrency regulation is a top priority for governments. Cryptocurrencies are very popular in the country and the government has had to go through several steps to protect investors.
There are no details on the specifics of the regulation, but it is clear that making asset classes part of the system. However, it is still unclear whether the government will explicitly state that Bitcoin is not a fiat currency.
The transition committee said, “We will strengthen the link between digital asset trading accounts and banks by expanding financial institutions that provide real-name verification services for virtual transactions.”
South Korea’s previous measures include mandating exchanges to obtain operating licenses and banning cryptocurrencies. The primary motive for this decision was investor protection.
South Korean cryptocurrency exchange warns about Luna trading
As these regulatory initiatives come into effect, South Korean cryptocurrency exchanges have been warning users about LUNA trading. Coinone stopped trading and Korbit Bithumb A warning has been sent to the user.
Both the LUNA token and the UST stablecoin have plummeted in price. The latter is $0.13 at the time of publication. The decline has caused a shockwave throughout the cryptocurrency world, causing huge losses to both individual investors and businesses.
Worries surrounding LUNA and UST could worsen in the near future if remedial measures do not have the desired effect. This could be a watershed for the crypto market as regulators are starting to take notice of the decline of stablecoins.
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