March 28, 2024

South Korea launches unscheduled checks of crypto exchanges

South Korean authorities have begun emergency inspections of local cryptocurrency exchanges, Yonhap reports. Purposechecks is to protect investors from repeating what happened with the stablecoin TerraUSD (UST) and its control token LUNA.

</p>

According to an unnamed representativeSouth Korean cryptocurrency exchange operator, financial authorities asked the exchanges for data on the amounts of transactions and investors, as well as what security measures the companies use for their users. I am sure that financial regulators are striving to develop measures to minimize damage to investors in the future.

Recall that last week the Terra network,developed by Singapore-based Terraform Labs collapsed when the UST stablecoin's peg to the dollar broke. UST has practically depreciated, falling to $0.15, while the price of the LUNA governance token has dropped to almost zero. According to Yonhap, around 200,000 investors in South Korea have invested in TerraUSD and LUNA.

Representative of financial regulators, commentingsituation, said there was little the South Korean government could do in terms of protecting investors at the moment, as it was all about the private sector. However, the financial authorities are monitoring the situation and will try to issue some regulations and recommendations to prevent similar situations in the future.

Earlier it became known that the South Korean government would oblige cryptocurrency exchanges to disclose information about the sender and recipient of transactions worth $820 or more, in accordance with FATF recommendations.

</p></p>