Discussions have been launched to legislate measures to prevent a recurrence of the LUNA disaster.
Korean IT news website EDaily reported that POSTECH’s Center for Cryptocurrency & Blockchain Research (CCBR) and Block Chain & Law convened a forum in Seoul on Wednesday to discuss regulatory improvements for digital assets.
Korea’s ruling party, Financial Services Commission, Financial Supervisory Service and Korea’s big five crypto exchanges have held two discussions so far to come up with measures to prevent another LUNA incident.
What they came up with in those discussions is a self-improvement plan for digital asset businesses – i.e., exchanges — that calls on exchanges to create joint standards for listing and delisting coins and adopt a warning system for digital assets by October.
They also came up with measures to protect investors, including the provision of white papers and other information on digital assets, the inclusion of a warning text in advertisements for digital assets, warning messages during periods of excessive investment and strengthening investor education.
The forum represented the first step in full-scale discussions to craft legislation.
ICONLOOP’s CEO, JH Kim, gave the keynote address on trends in Web 3, blockchain and digital assets, discussing issues related to DeFi, NFTs, DAOs and the like.
If you’re a legal nerd, blockchain law specialist Park Jong-baek spoke about what legal form DAOs should take in Korea. Basically, he suggested they take the form of a partnership, except when handling offline property, in which case they should run as an LLC.
He pointed to the case of CityDAO, which has purchased land in the US state of Wyoming to build a “DAO-governed crypto city.” Or as they put it more fully:
“CityDAO’s mission is to build an on-chain, community-governed, crypto city of the future.”
Got it. Anyway, the reason they can do this is because Wyoming passed last year the first law in the world allowing individuals and organizations to create a legally recognized DAO, in this case, as LLCs:
“The Wyoming DAO Law formalizes protection for DAO developers by prohibiting lawsuits against DAOs as general partnerships as well as enforcing the rights of DAOs as legal persons in state court, thereby protecting the developers individually. No longer do developers have to grabble with the uncertainty of whether they could be held personally liable simply by creating a DAO. Wyoming provides DAO members with the same limitations on individual liability afforded to members of limited liability companies (LLCs).”