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South Korean Terra Holders Skyrocketed After Its Crash, Here’s Why

 A South Korean financial watchdog revealed that LUNA and UST holders increased massively after the crash, hoping for a rebound in prices.
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South Korean Terra Holders Skyrocketed After Its Crash, Here’s Why

South Korea’s Financial Services Commission’s Financial Intelligence Unit (FIU) on Tuesday revealed LUNA and UST holders increased massively after the crash, hoping for a rebound in prices.

The South Korean government is now implementing additional measures to prevent another Terra-like crash, according to local media reports. The collapse of Terra’s UST stablecoin and LUNA in early May caused investors across the world to lose billions.

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South Korea Investigates the UST and LUNA Collapse

South Korea’s Financial Intelligence Unit during the “Emergency Check on Digital Assets Basic Act and Coin Market Investor Protection Measures” meeting at the National Assembly on May 24 reported the number of users impacted by the collapse. The FIU report revealed that South Korea currently has 280,000 investors holding nearly 80 billion tokens. Whereas on May 6, there were only 100,000 users holding 3.17 million tokens.

Kim So-young, deputy chief of the Financial Services Commission, told local 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) during the “Enactment of the Digital Asset Framework Act and Emergency Inspection of Coin Market Investor Protection Measures” meeting revealed plans to analyze and manage the risks of the UST and LUNA crash.

The FSS will conduct on-site inspections of companies providing financial services related to the Terra project. The inspection will check the maintenance of the service, the status of withdrawal funds, and the effectiveness of user protection measures.

Moreover, the Financial Supervisory Service plans to analyze the risk of virtual assets, along with monitoring domestic and foreign virtual asset markets. The authority asserts the importance of crypto market monitoring as a weak algorithm, mass short-selling attacks, and lack of LFG‘s support led to Terra’s collapse.

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Crypto Exchanges Under Scrutiny After Terra’s Collapse

South Korean government and agencies are investigating crypto exchanges’ role in the Terra crash after reports emerged that exchanges ignored investor protection. The Fair Trade Commission (FTC) today said it will check whether crypto exchanges are complying with fair terms and conditions. Last year, FTC recommended that 16 exchanges, including Dunamu (Upbit), Bithumb Korea, Streamy, Oceans, Korbit, and Coinone, rectify the unfair terms and conditions provisions.

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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