The crypto world has witnessed the dramatic fall of Terra very recently. local assets of the LUNA network. LUNA (now LUNC) and TerraUSD (UST) had a devastating impact on the entire network. Naturally, the collapse had a hard impact on investors and stock markets.
The fact that the drop had a great impact, especially on the stablecoin front, also negatively affected the safest haven ‘stablecoins’ in the crypto world. It seems that this collapse will result in the fact that the already complicated regulatory movements will become even more complicated for stablecoins.
South Korea, in particular, is taking important steps to scrutinize Terra’s collapse as it makes moves to protect investors. While South Korea set up a committee focused solely on digital assets, Terra’s collapse certainly accelerated work in the regulatory space. It is reported that this committee will meet in the last week of June.
While creating the laws stands out as a difficult process in itself, much deeper research will be required after the collapse of Terra. Because, South Korea The government decided to set up a committee to monitor the industry while drafting the laws.
due to the Terra incident, the Korean government decided to set up a digital asset committee that integrates different departments, including specifying listing standards; monitoring the market and unfair transactions; formulating disclosure systems, etc. https://t.co/P0cbIzAxTP
— Wu Blockchain (@WuBlockchain) May 31, 2022
As stated in the tweet, the South Korean committee; Oversee procedures such as listing, investor protection, and disclosures.
South Korean stock markets are doing their best to stay away from all kinds of relations with Terra. It was also announced that five exchanges would be consulted to further assist the government’s efforts to regulate the market. These exchanges will be Bithumb, Upbit, Cobit, Gopax along with Coinone.
The UK government, like any other government in the world, stablecoinIt aims to protect against According to reports, the UK Treasury lobbied the government to authorize the Bank of England to appoint administrators to monitor bankruptcy settlements with failed stablecoin issuers.
Although the documents obtained as a result of these negotiations have not yet received a response from the Parliament, the feedback is planned to be made on 2 August.
Here is the continuation of the article ‘Managing the failure of firms of systemic digital payment assets (including stablecoin)’:
“Since the initial commitment to regulate certain types of stablecoins, events in the crypto-asset markets have further highlighted the need for appropriate regulation to help mitigate consumer, market integrity and financial stability risks.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.