The government of South Korea via its financial regulators has just rolled out an emergency investigation into its crypto ecosystem, following the huge fall that saw the crash of Terra’s native coins, LUNA and UST recently.
According to the report from local news sources, the Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) requested crypto exchanges to give a detailed report on how they managed the ugly situation that met the blockchain market in the past week.
The Terra Network was co-founded by Do Kwon, a South Korean citizen but is recognized and traded worldwide. The digital assets crashed last week due to their algorithmic nature, and also lost a remarkable value to the US dollar, now trading in little cents.
The negative turnout of events for the stablecoins has affected a remarkable number of investors in South Korea, presumably 200,000 individuals who had confidence in the crypto asset.
The conditions around its domestic cryptocurrency market have made the South Korean financial regulators consult virtual assets service providers within its territory, most especially crypto exchanges to give a detailed report of transactions that have occurred in the past week, including the volume of trading, closing prices, and the exact number of investors.
The chief of the FSS, Jeong Eun-bo expressed his concerns about the recent event, noting that while the nation does not have a reliable regulation on virtual assets, international authorities should be consulted so as to share ideas on the way forward.
Do Kwon Invited for Hearing by a South Korean National Assembly
As reported in local news this week, Rep. Yoon Chang-hyeon, a member of the South Korean upper legislative arm has hinted at the house considering a hearing from Do Kwon to clear the air on the happenings around his crypto-based network.
He pointed out that, “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.”
The South Korean government continues to raise concerns and make consultations on how investors in the blockchain market can be protected from the volatile nature of the crypto sphere.