News

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

Published by

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.

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.

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.

Varinder Singh

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

Share
Published by

Recent Posts

  • News

Terra USTC Price Skyrockets By 75%; Will It Recover More?

Terra’s collapsed tokens TerraClassicUSD (USTC) and Terra Classic (LUNC) which triggered the crypto market crash…

June 29, 2022
  • News

Does Celsius Owe $174 Mln To Voyager Digital?

Nansen CEO Alex Svanevik on Wednesday revealed that Celsius received large amounts of funds from…

June 29, 2022
  • Uncategorized

As Bitcoin Goes Below $20K, Stats Show How Close Is Bottom

Amid much hype of buying the dip at current prices and market reaching its bottom…

June 29, 2022
  • News

Babel Finance Reportedly Loses Top Employees Amid Insolvency Rumors

According to crypto news and research website The Block, beleaguered crypto lender Babel Finance is…

June 29, 2022
  • News

CoinFlex CEO Vs Roger Ver, Who Owes Whom?

CEO of Cryptocurrency exchange CoinFLEX Mark Lamb, stated on Twitter that CoinFlex has issued Bitcoin Cash…

June 29, 2022
  • News

Just-In: FTX CEO Sees These Crypto Firms Becoming Insolvent

FTX CEO Sam Bankman-Fried warned in a recent interview that several small crypto exchanges are…

June 29, 2022