Following the Terra incident South Korean authorities have launched an investigation and asked crypto exchanges to submit their transactions
South Korean Authorities Investigate Terra’s Collapse
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) of the country launched an investigation into the collapse of Terra, which was triggered by the de-pegging of its UST stablecoin and the subsequent fall of the token’s ecosystem, Luna.
The study was launched in order to establish the reasons for the current events and to increase investor protection against future shocks.
According to the source, the fall caused losses to over 200,000 South Korean investors, with some of them losing huge sums of money.
Consider the story of the man who lost $2 million and then rushed the home of Terra’s founder and CEO, Do Kwon, most likely in quest of explanations.
Crypto Exchange Operators To Provide Information On Trading Volumes
According to what is known at this moment, the South Korean crypto exchange operators have been asked to provide information on trading volumes, the history of transactions directly related to the UST and LUNA, and the total number of holders of these cryptocurrencies.
Furthermore, financial regulators requested that the aforementioned organizations report on the countermeasures taken (or not) to protect investors’ funds, as well as their evaluation of what occurred.
More Attention On Crypto Regulation
The Terra Crash, which caused an estimated $100 billion in bitcoin market losses, drew even more attention from financial regulators all over the world to the already difficult topic of cryptocurrency regulation.
While Terra is nearly daily announcing plans in the public domain to restore the ecosystem and recoup stolen cash, the authorities are already taking concrete action, and their rhetoric on cryptocurrencies is becoming harsher.
Jeong Eun-bo, the head of the aforementioned FSS, agrees with Ashley Alder, the CEO of Hong Kong Securities, who recently stated the importance of worldwide cooperation in the area of effective crypto market regulation.
