Aftermath of Terra LUNA, South Korea will Increase its Supervision of Exchanges
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According to The Korea Times, South Korean regulators are trying to strengthen surveillance and regulation of cryptocurrency exchanges in the wake of the disaster.
Crypto exchange CEOs and high-ranking government officials addressed strategies to prevent future disasters like the Terra-Luna collapse at an emergency two-day National Assembly conference on May 24. The seminar was attended by representatives from the country's leading exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax.
At the seminar, People Power Party leader Sung Il-jong said:
"We need to make exchanges play their proper role, and toward that end, watchdogs must supervise them thoroughly. When exchanges violate rules, they should be held legally responsible for ensuring that the market functions well without any troubles."
Terra Ecosystem
Terraform Labs, the business behind the Terra ecosystem, and its CEO, Do Kwon, are already being investigated by South Korean authorities. The Seoul cybercrime police department has requested that Terraform employees suspected of embezzlement have their assets frozen.
According to Newsis, the FSC, Financial Intelligence Unit, and Financial Supervisory Service are reviewing Terra's whitepaper and other papers. This is being done to figure out what caused the collapse, how much damage was done, and how to prevent it. On the other hand, the prosecution is investigating Do Kwon's role in the disaster and whether he committed any fraud in connection with the Terra-Luna project.