South Korea’s Financial Services Commission’s Financial Intelligence Unit (FIU) on Tuesday revealed LUNA and UST holders elevated massively after the crash, hoping for a rebound in costs.
The South Korean authorities is now implementing further measures to forestall one other Terra-like crash, based on local media reports. The collapse of Terra’s UST stablecoin and LUNA in early May prompted traders the world over to lose billions.
South Korea Investigates the UST and LUNA Collapse
South Korea’s Financial Intelligence Unit throughout the “Emergency Check on Digital Assets Basic Act and Coin Market Investor Protection Measures” assembly on the National Assembly on May 24 reported the variety of customers impacted by the collapse. The FIU report revealed that South Korea presently has 280,000 traders holding almost 80 billion tokens. Whereas on May 6, there have been solely 100,000 customers holding 3.17 million tokens.
Kim So-young, deputy chief of the Financial Services Commission, instructed native media outlet Naver:
“In order to draw up effective regulatory systems on crypto assets, we will closely review overseas cases of regulations and strengthen cooperation with international organizations and major countries.”
Meanwhile, South Korea’s Financial Supervisory Service (FSS) throughout the “Enactment of the Digital Asset Framework Act and Emergency Inspection of Coin Market Investor Protection Measures” assembly revealed plans to research and handle the dangers of the UST and LUNA crash.
The FSS will conduct on-site inspections of corporations offering monetary providers associated to the Terra undertaking. The inspection will verify the upkeep of the service, the standing of withdrawal funds, and the effectiveness of consumer safety measures.
Moreover, the Financial Supervisory Service plans to analyze the danger of digital property, together with monitoring home and international digital asset markets. The authority asserts the significance of crypto market monitoring as a weak algorithm, mass short-selling assaults, and lack of LFG‘s support led to Terra’s collapse.
Crypto Exchanges Under Scrutiny After Terra’s Collapse
South Korean authorities and companies are investigating crypto exchanges’ function within the Terra crash after reports emerged that exchanges ignored investor safety. The Fair Trade Commission (FTC) as we speak mentioned it should verify whether or not crypto exchanges are complying with honest phrases and situations. Last 12 months, FTC beneficial that 16 exchanges, together with Dunamu (Upbit), Bithumb Korea, Streamy, Oceans, Korbit, and Coinone, rectify the unfair phrases and situations provisions.
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