The South Korean government launches an extreme investigation on Terraform Labs.
Proper and more constrained regulations to be announced soon.
Refrains South Korean crypto exchanges from trading LUNA and UST.
Terraform Labs has been the talk of the crypto world, with its two tokens, the LUNA and the UST, a pegged stable coin, both almost dead now. Terraform Labs based in South Korea, founded by Do Kwon, is currently under major threats and investigations.
Unimaginable millions have been lost within hours due to the collapse of LUNA and UST. Being from South Korea, millions and millions of South Koreans who have invested in LUNA are now going bankrupt.
With the complete financial economy of the nation plunging down, just due to LUNA and UST, the government of South Korea is taking up strict measures and actions. Accordingly, the news has been officially out by Korea Times, depicting new strict measures and proper safeguards for the crypto industry of the nation.
Views of the Authorities
A conference has been held for about the past two days by prominent financial authorities from the government. Also, the major five prominent South Korean crypto exchanges and CEO’s of the firms took part in the conference too.
This two day conference finally came to a conclusion today, yet no other proper dates have been announced. As per the financial authorities and the Financial Commission Vice Chairman, Kim So-young the crypto industry and market has to be properly regulated with more new reforms.
Moreover, they term that the entire nation’s crypto industry is left without any supervision or watchdog, which indeed is necessary to prevent and warn from such mishaps like that of the LUNA and the UST.
In addition, the financial authorities stress more on the crypto exchanges to oblige the rules and regulations properly and function accordingly. When such a mishap occurs, the exchanges should make sure and try to prevent it by proper supervision. In spite of all this, the OKX exchange indeed has played an incredible role by warning its UST users well in advance and opening the stacked up UST reserved, allowing them to trade and swap.