Seong Il-jong, Chairman of the Policy Committee of the People Power Party, "We Will Enact the Basic Law for Blockchain Platforms"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The People Power Party is moving to enact a basic law related to blockchain to prevent a recurrence of the Luna incident.

On the 13th, Seong Il-jong, chairman of the People Power Party's Policy Committee, said at a government-party meeting held at the National Assembly on restoring fairness in the virtual asset market and protecting investors, "We are thinking of enacting a basic law for platforms based on blockchain," adding, "There are parts in the Special Financial Transactions Information Act (Special Act on Reporting and Using Specified Financial Transaction Information), but it is disorganized in many ways, so we will create a basic law for blockchain platforms to support the Fourth Industrial Revolution era." He continued, "The goal of this meeting is to create a new enactment law."

Yoon Jae-ok, a member of the People Power Party, also said, "When the problem first arose, there were concerns about delays because the responsible ministry was not determined, and even afterward, the responsibility relationship was not clearly organized," adding, "We will quickly decide on the specific direction of the basic law."

There was also an opinion that it is important to enable the joint consultative body, formed by the five major virtual currency exchanges, to operate effectively. On that day, exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax promised to form a joint consultative body. They also agreed to prepare strengthened regulatory measures covering all stages from transaction support, distribution (trading), to transaction termination (delisting) starting from October and apply them commonly.

Yoon Chang-hyun, chairman of the People Power Party's Special Committee on Virtual Assets, said, "I believe the coin market will last a long time only if investor protection measures are prepared," adding, "When we talk about a joint consultative body, it is important to provide actual power, budget, and organization so that it can become a proper autonomous consultative organization with an established structure and budget." He continued, "If the consultative body has power, it will be evaluated that the promises of the exchanges are trustworthy."

Regarding the question of whether Terraform Labs CEO Kwon Do-hyung will be summoned, he said, "Assuming that the Terra-Luna incident has grown this large, calling him to the National Assembly in our country would be a secondary issue and would be closer to an international scandal," adding, "We will have to see the situation on this matter."

Meanwhile, Lee Bok-hyun, governor of the Financial Supervisory Service, announced that he would examine whether Luna has securities characteristics.

On that day, when asked by reporters whether the Financial Supervisory Service could also inspect the securities nature of Luna, which is currently being examined by the prosecution, Lee replied, "We will look into that carefully as well."

He added, "There have been many cases where unfairness in virtual assets was not punished due to legislative deficiencies, but we are carefully reviewing whether there are ways the Financial Supervisory Service can act, as well as the policy stance of the Financial Services Commission regarding the enactment and interpretation of laws with authority."

Earlier, when the price of TerraUSD (UST), a stablecoin designed to be pegged to 1 dollar, plummeted, the price of its sister coin Luna also fell, causing a massive crash. At that time, financial authorities stated that they did not have legal authority to impose sanctions.