As has been feared, the crash of cryptocurrency terra (MOON) in stablecoins terrausd (UST) is now also attracting the attention of regulators.
Two South Korean financial regulators, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS), are conducting an “emergency inspection” of the incident. Yonhap News Agency reported this on May 17:
(LEAD) S. Korea looks into cryptocurrency market following TerraUSD, Luna crash https://t.co/kASd1yiha6
— Yonhap News Agency (@YonhapNews) May 17, 2022
The two agencies request information from South Korean cryptocurrency exchanges on transactions associated with LUNA and UST. This concerns information such as trading volumes and the number of investors involved. According to the publication, there may be more than 200,000 South Korean LUNA investors.
The authorities also ask exchanges how they are dealing with the crash, what they think caused it and what measures they are taking in this regard. An anonymous representative of one of the exchanges says:
“Last week, financial authorities requested data on the number of transactions and investors, and looked at the relevant measures taken by the stock exchanges. I think they did it to draft measures to minimize the harm to investors going forward.”
South Korean politician demands parliamentary hearing with Terra (LUNA) founder Do Kwon
However, it doesn’t stop there. A South Korean politician from the ruling party is demanding a parliamentary hearing over the LUNA and UST crashes. He wants not only exchanges, but also Terra founder Do Kwon to be questioned. That reports the Korean Newspim on May 17th.
“We should bring related exchange directors, including Terra CEO Do Kwon, who has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.”
According to the politician Chang-Hyun. The National Assembly is the legislature in South Korea. He even accuses the exchanges of taking advantage of the situation:
“Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11, but Upbit did not stop trading until May 13. Upbit, the last to stop trading even after seeing the crash, is the number 1 company with an 80% share. In just those three days, it made nearly 10 billion won in commission revenue.”
₩10 billion is about $7.9 million or $7.5 million. By the way, Do Kwon came up with a new proposal for Terra today: a hard fork.
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