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South Korean to More Closely Scrutinize Exchanges Following Terra Collapse
Summary: South Korean Financial Authorities and the government are looking to introduce legal measures and more calculated supervision on crypto exchanges in wake of Terra’s collapse, according to a report by The Korea Times. Crypto was on the agenda at a two-day-long National Assembly emergency seminar in South Korea to start this week in response to ...
South Korean Financial Authorities and the government are looking to introduce legal measures and more calculated supervision on crypto exchanges in wake of Terra’s collapse, according to a report by The Korea Times.
Crypto was on the agenda at a two-day-long National Assembly emergency seminar in South Korea to start this week in response to Terra’s stablecoin, TerraUSD (UST) and its sister coin LUNA’s collapse. The massive drop in price saw UST and LUNA go from moderately healthy levels to $0.066 and $0.000152 respectively. The May 9 tragedy saw UST dropped more than 94% after it depegged from $1, while LUNA dropped more than 99.99%.
The report estimates that around 280,000 South Koreans were affected by the failed Terra project and their two coins going to almost zero. In addition, there were countless other non-South Korean natives that had invested in the project that were burned by the collapse as well.
"We need to make exchanges play their proper role, and toward that end it is crucial for watchdogs to supervise them thoroughly," Rep. Sung Il-jong of the ruling People Power Party said. "When exchanges violate rules, they should be held legally responsible to ensure that the market functions well without any troubles."
In addition, authorities are looking into whether Do Kwon, the founder of the Terra project and a South Korean citizen, has perpetrated fraud in targeting investors for his failed project. This was also coupled with dozens of accounts on Twitter demanding that Do Kwon serve time for his actions, as they believed that he affected the lives of thousands of people. Now we know that number, in terms of South Koreans affected.
Cryptocurrency has been a hot political topic in South Korea in recent months, as both presidential candidates for the March election talked about it in an effort to appeal to younger voters. Now South Korean president, Yoon Suk-Yeol, pledged to deregulate the industry to unlock its full potential. Now all eyes are on the president to see what he will do from here.
Author: Tyler Irvin
Tags: Crypto,LUNA,Terra,UST
Link: South Korean to More Closely Scrutinize Exchanges Following Terra Collapse [Copy]
