The incident of the collapse of the Terra ecosystem over the course of the day not only clouded the crypto market but also disrupted crypto trading policy in South Korea.
In a recent development, the Financial Services Commission (FSC) recommended the domestic crypto industry to introduce a licensing system to token issuers and crypto exchange platforms as an investor protection measure.
This also involves any company conducting an initial coin offering (ICO).
At the same time, the agency called for new policies to reduce insider trading, pump and dump schemes, as well as wash trading.
Wash trading - involves the activity of buying and selling simultaneously to cause the movement of the price of crypto assets.
It is understood that if the parties involved fail to do so, they risk receiving more severe penalties and punishments than those stated in the Capital Markets Act.
Not only that, coin producers - whether local or international interested in penetrating the South Korean market - were asked to submit a number of things to the FSC:
Crypto project whitepaper
Company officer information
Plan for the use of funds raised through the ICO
Potential risks associated with the project
The state administration described the licensing system as a protection that needs to be expedited, again after LUNA and UST recorded microscopic values a few days after recording one- to two-digit values.
Terra founder Do Kwon has also called on the South Korean government to give real evidence on the Terra issue in parliament.
