The two South Korean financial regulators, the Financial Services Commission (FSC) and the Financial Supervision Service (FSS), are conducting an “emergency check” for the incident. Yonhap News Agency reported on May 17:
(LEAD) South Korea looks into the cryptocurrency market after the collapse of TerraUSD and Luna https://t.co/kASd1yiha6
– Yonhap News Agency May 17 2022
Both agencies are requesting information from South Korea Cryptocurrency exchange On transactions associated with LUNA and UST. This relates to information such as trading volumes and the number of investors involved. According to the publication, there may be more than 200,000 investors from South Korea LUNA.
The authorities also ask those dealing with them how they deal with the incident, what they believe caused it and what actions they take in this regard. An anonymous representative of an exchange says:
Last week, the financial authorities requested data on the number of deals and investors and were briefed on the relevant measures taken by the stock exchanges. I think they did that to craft measures to minimize the harm to investors in the future.”
South Korean politician demands parliamentary hearing with founder of Terra (Luna) Do Kun
However, it doesn’t stop there. A South Korean politician from the ruling party is demanding a parliamentary hearing on the crashes of LUNA and UST. He wants not only the exchanges, but also founder of Terra Do Kwon to be questioned. That Korean reports News On May 17th.
“We must bring relevant stock exchange executives, including CEO Terra Do Kwon, who has become a recent issue, to the National Assembly for a hearing on the cause of the situation and investor protection measures.”
According to politician Chang Hyun. The National Assembly is the legislative body in South Korea. He even accuses the exchanges of exploiting the situation:
Coinone, Korbit, and Gopax stopped trading on May 10, Bithumb on May 11, but Upbit didn’t stop trading until May 13. Upbit, the last company to stop trading even after seeing the crash, is the first with 80% stake. In just those three days, I generated nearly 10 billion won in commission income.”
10 billion yen, or about $7.9 million, or $7.5 million. By the way, Do Kwon came up with a new proposal for Terra today: hard fork†
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