As the LUNA and UST collapse shook the cryptocurrency market, South Korean state officials announced the launch of an emergency control.
South Korean institutions are after the collapse of Terra
Financial Services Commission and Financial Audit Capacity, the two regulatory bodies responsible for the country’s financial markets, reported that they are following the developments carefully. A Financial Services Commission spokesperson highlights the lack of binding laws or regulations for cryptocurrencies. A spokesperson for the Financial Supervisory Authority said they were monitoring whether the Luna incident would raise existing financial concerns.
Following the collapse and loss of confidence of LUNA and UST, South Korea increased its legislative activity over cryptocurrencies. Officials said they want to accelerate the passage of appropriate legislation by monitoring the evolution of ‘cryptocurrency’ legislation in key countries. They are planning legislation that includes consumer protection for the cryptocurrency market next year, with the goal of going into effect by 2024.
Financial authorities do not have the authority to request, evaluate or audit data from the Terra platform under current legislation. The country’s only cryptocurrency legislation in effect since last year allows virtual asset service providers such as exchanges to monitor money laundering operations.
CZ responded to Binance’s $300 million Terra (LUNA) investment claims
After the collapse of the Terra ecosystem, as we quoted Cryptokoin.com Rumors spread on Twitter that Binance had invested $300 million in Terra. Making detailed explanations on the subject, CZ clarified that they did not invest in Terra. CZ previously criticized the Terra team on Twitter for their decisions to stop the collapse. He reported that despite Binance’s contact, they did not respond. We covered the details in this article.
2/ First, I need to address falsehoods circulating in crypto twitter.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
FTX CEO Sam Bankman-Fried on Terra made. He said the project was unlike Theranos, a failed blood-testing initiative that had been marketed too well and raised billions of dollars in funding. He also evaluated new proposals to save the Terra ecosystem, emphasizing that the collapse was due to stablecoin UST, which was unable to support it at a 1:1 ratio.
Now Do Kwon has to prove that he truly believes in the project and is not fraudulent.
