South Korean Regulators Call for Emergency Inspection after LUNA Crash

As a result of the recent collapse of the TerraUSD and LUNA cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, South Korea’s financial authorities have launched emergency inspections of cryptocurrency exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term operators. After TerraUSD and its sister coin, LUNA tumbled, investors suffered massive losses, sending shockwaves around the world.

According to The Korea Times, local cryptocurrency exchange operators recently were asked by the Financial Services Commission and the Financial Supervisory Service (FSS) to share information on transactions related to TerraUSD and LUNA, including the volumes of their trading, their closing prices, and the number of investors involved.

In addition, regulators have requested plans for countermeasures in the wake of the recent market crash and an analysis of what caused it. “Last week, the financial authorities asked for data on the amount of transactions and investors and sized up the exchanges’ relevant measures. I think they did it to draw up measures to minimize the damage to investors in the future,” an official of a local cryptocurrency exchange operator commented.

Globally, around $45 billion has dissipated since the crypto market plummeted over the past week, according to market observers. Approximately 200,000 investors in South Korea are believed to have invested in TerraUSD and LUNA.

Legislator Calls on Do Kwon to Appear before the National Assembly

As reported by Finance Magnates, a South Korean lawmaker proposed that the Founder of Terraform Labs, Do Kwon, be brought before the National Assembly for a hearing.

Yoon Chang-hyeon, a right-wing legislator from South Korea’s ruling party, proposed the idea during a session of the legislature. “We should bring related exchange officials, including CEO Kwon Do-hyung of Luna, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors,” Chang-hyeon pointed out during the session.

Furthermore, Chang-hyeon raised concerns about the differing responses of cryptocurrency exchanges in the Asian country to the crash, which shook crypto communities worldwide.