South Korea Launched Emergency Inspections Of Crypto Exchanges

South Korea launched emergency inspections of crypto exchanges as they embarked on an emergency assessment of the domestic crypto exchanges so let’s find out more today in our latest cryptocurrency news.

South Korea’s financial services commission as well as the Financial Supervisory Service launched an emergency inspection into local exchanges according to the reports from Yonhap reprots. The move is linked to the recent collapse of the Terra native USD stablecoin and the governance token LUNA aiming to ensure better protection for the investors. Yonhap representative noted:

“Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures,  think they did it to draw up measures to minimize the damage to investors in the future.”

Before South Korea launched emergency inspections, TerraUSD and LUNA crashed after the stablecoin lost its dollar peg. The system collapsed a week ago, with UST de-pegging from the dollar and dropping below $0.15 the price of LUNA crashing to zero and making the coin useless. More than 200,000 investors in South Korea are estimated to invest in LUNA and UST. The Korean financial authorities are watching the market following the TerraUSD collapse they admit there’s not much they can do right away in terms of investor protection:

“In regards to the Luna incident, we are monitoring the overall situational changes, but there isn’t a direct measure the government can take at this moment. There is no ground for the government to intervene because coin transactions are being freely operated by the private sector.”

The latest events around Terra result in a quicker establishment of South Korea’s Digital Asset Basic Act that is reproted to be approved in 2023 and take effect a year later. The upcoming legislation is expected to include provisions for a 20% tax on digital assets and insurance for the users.

As recently reported, President-elect Yoon is firm on remaining crypto-friendly and he could lift the ban on the initial coin offering which was imposed in 2017. the move is one of the few important actions that Yoon’s Presidential Transition Committee will be working on in order to remain friendly on digital assets. The move behind doing so includes providing an environment for investors to trade digital assets with ease. South Korea delays its planned taxation and can be mounted to an absence of a proper taxation system alogn with the fitting measures which are supposed to protect the investors interest.