Regulators stressed the need to have a regulatory framework in place during a meeting of South Korea’s National Assembly, given the failure of multi-billion dollar cryptocurrency exchange FTX.

“As the market fell due to global austerity, Terra-Luna, Celsius and FTX failed one after another, making it a year of declining trust,” Lee Myung-soon, senior vice president of the Financial Supervisory Service (FSS) said.

Kim So-young, vice chair at the Financial Services Commission (FSC) said that the FTX crisis revealed the need to have regulatory mechanisms to prevent unfair trade and ensure virtual asset service providers fulfil obligations to protect user assets, and to forbid service providers from issuing tokens.

South Korea’s government officials are currently drawing up a comprehensive regulatory framework, the Digital Asset Basic Act, expected to be finalized next year. The act will be formed from 13 crypto legislative proposals currently before the National Assembly.