Korean Crypto Exchanges May Face Legal Problems Due to Terra Collapse

Coin crash

Last updated May 24, 2022

The South Korean ruling party arranged a meeting with the executives of the crypto exchanges about the collapse of Terra.

South Korea is a very crypto-friendly country in the world, but here the laws are very strict to ensure the safety of the investors on crypto exchanges and also to prevent the illegal use of cryptocurrencies such as money laundering or financing of terrorism. Even the rules to list the new crypto assets on the South Korean exchanges took a long time due to the lengthy documentation process.

On May 23, local news media outlet Newsspim reported that South Korea’s ruling party had scheduled a meeting between the various executives of Crypto exchanges to discuss the collapse of the Terra ecosystem, resulting in a huge loss to the citizens. .

The top five leading local crypto exchanges, including Upbit, Bithumb, Coinone, Korbit and Gopax, will be the top crypto firms to discuss over the collapse of Terra, which saw a loss of $40 billion.

Today was the scheduled date for this meeting. Reportedly, the meeting will sort out the possibilities, where Korean crypto exchanges were responsible for the collapse of the Terra ecosystem.

Yesterday, Yoon Chang-Hyeon, a member of South Korea’s ruling party and chairman of the parliament’s special virtual asset committee, said they will monitor the sideways moves of Korean crypto exchanges where they could not bear the loss to crypto investors. fuses.

He said:

“We will monitor investor protection (of the stock exchanges)”,

Earlier, Yoon said that crypto exchanges have not taken appropriate action against the risky situation, where Terra’ UST & Luna coin trading was not safe from the crypto traders.

Now it will be interesting to see the outcome of this meeting as on the one hand the usual high panic & high selling pressure resulted in the collapse of Terra’ Native & stable coin demise, on the other hand crypto exchanges were able to trade under that situation to keep crypto traders under the safe zone.

Also Read: Robert Kiyosaki Stresses Saving Bitcoin And Gold In This Situation

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