By Richard Hines
Yoon Chang-Hyun, a South Korean congressman, viewing the current situation of the cryptocurrency community has made plans to revise and implement regulations to avoid another FTX disaster.
Changes To The Crypto Regulations
Authorities in South Korea have suggested that laws be placed on cryptocurrency use and the crypto space as a whole to offer security and manage this area in the wake of the two recent collapses of FTX and Luna.
To avoid a repeat of the FTX disaster, Chang-Hyun is planning changes to the operations in the cryptocurrency sector.
According to a report, the Congressman is inclined to give the Financial Services Commission and the Supervisory Commission additional officiating jurisdiction over these token securities as well as cryptocurrency exchanges.
This report notified the public of the congressman’s plan to change the already-stated regulations in place to cover up for the system’s shortcomings and present gaps.
This bill would be passed at the National Assembly’s Legislative Review
This new amendment focuses on user actions on the blockchain and how to safeguard and keep investors safe from any occurrence that may arise as a result of a poor market or rogue exchange. It also gives the Financial Commission more control over these situations.
This implies that in the future, authorities will have the authority to monitor and control crypto projects and activities in order to safeguard investors from devastating losses such as the two collapses that occurred this year.
It’s also worth mentioning that during the Terra/Luna Crisis in May when Do Kwon fled following his bankruptcy, South Korean authorities issued arrest warrants alongside Interpol.
Do Kwon, on the other hand, is in hiding despite having declared his innocence to the world via Twitter.
Exchanges Will No Longer Self Regulate
Another crucial aspect that this amendment addresses is exchange activity. Exchanges will no longer be allowed to exploit customer funds for their own purposes; after clients make deposits, businesses will no longer be able to withhold these deposits in the same way FTX did.
It also invalidates the self-regulation enforced by exchanges. Meaning, exchanges will not be allowed to make exclusive judgments about price fluctuations or trading activity; instead, decisions will be delegated to South Korean financial services.
Exchanges are also expected to notify any unfair judgment or treatment of the head of the financial supervisory agency, who will then take it up from there and see that the concerns are remedied.