This is how Terra fiasco is forcing South Korean regulators’ hand
Investors have lost a significant chunk of their savings from the damage caused by the Terra [LUNA] crash. Well, the incident sent shockwaves across the crypto ecosystem, dragging down the entire market. Around $45 billion was wiped off the two tokens’ market cap within a week- for starters.
In light of the disaster, South Korean regulators looked to tighten scrutiny and supervision of crypto exchanges, according to a 24 May report by The Korea Times. At an emergency two-day National Assembly seminar ending on 24 May, crypto exchange leaders and high-ranking government officials discussed measures to counter future fiascos like the Terra-Luna collapse.
In fact, on 25 May, the Financial Supervisory Service (FSS) decided to analyze the risk characteristics of virtual assets in the country. Wu Blockchain, a famed news agency reshared this development on the social media platform.
<p lang=«en» dir=«ltr» xml:lang=«en»>Because of the impact of the Terra incident, the Korean financial regulator will establish a unified standard for analyzing the risk characteristics of virtual assets to strengthen the monitoring of the virtual asset market. https://t.co/JbCaBixqYY— Wu Blockchain (@WuBlockchain) May 25, 2022
The said authority aimed to remove the method currently evaluated by exchanges in different ways and unify them. The report added,
“Although, the standardization work carried out is ‘only at the beginning stage’. But it is expected that a uniform evaluation system can be ordered from the virtual asset exchange once a legal system is established.”
To analyze the risk characteristics of virtual assets in the country, FSS contracted a ‘service contract with a research institute affiliated with a university.’ Further, the authority is
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