Gus – Cryptocurrency expert
In light of the LUNA and UST implosion two weeks ago, the Financial Supervisory Service (FSS) of South Korea has announced preparations to undertake on-site checks on firms that supplied financial services to the Terra Labs project.
On Tuesday, May 24, 2022, Chan-woo Lee, a senior vice president of the FSS, made the news. At the National Assembly Hall, during the Enactment of the Digital Asset Framework Act and Emergency Inspection of Coin Market Investor Protection Measures.
According to Lee, the danger of the crypto assets such as Terra problem influencing the financial sector is still minimal, but on-site checks were performed on some organizations that provide financial services in connection with the issuer or linked virtual assets to prevent risk transfer to the financial market. An inspection will be carried out.
The FSS also announced that it will undertake a research service to assess the risk of virtual crypto assets and categories them based on risk characteristics in order to help guide future exchange listing reviews.
Terra Labs' native cryptocurrency, LUNA, fell from $119 to $0.000002 on May 11, 2022. Within 48 hours, it had lost all of its worth. Its stablecoin, UST, has likewise dropped from $1 to $0.02. According to Bloomberg, investors lost approximately $60 billion due to the failure of these projects. Buying crypto such as Luna can increase the risk of losing money.
Kristalina Georgieva, the chief of the International Monetary Fund (IMF), labelled the collapse of Terra-Luna as a "multi-level pyramid scam" during the World Economic Forum Annual Meeting.
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