Financial Regulators Step Into, Directly Investigate Domestic Crypto Exchange After UST And LUNA Collapses

JAKARTA – South Korea's financial regulator, the Financial Services Commission (FSC), and the Financial Supervision Commission (FSS) recently carried out an emergency investigation into the fall in the price of crypto LUNA and stablecoin UST.

The FSC and FSS asked the domestic crypto exchange to provide information regarding the transactions and crypto investors developed by Terraform Labs, according to local media reports Yonhap News.

"Last week, the financial authorities requested data on the number of transactions and investors, and measured the actions of relevant exchanges", said one crypto exchange operator in South Korea, quoted from Bitcoin.com News.

“I think they are investigating to put together measures to minimize damage to investors in the future,” said the crypto exchange official.

Financial regulators ask for some information including trading volume, closing price, and the relevant number of investors. Local media reports added that regulators are responding to the crypto market crash and are working to analyze the causes of the LUNA and UST crashes.

Additional information, UST and LUNA were created by Kwon Do-hyung (aka Do Kwon), a South Korean citizen. The developer company, Terraform Labs, was founded in Singapore.

After the destruction of LUNA and UST. Do Kwon comes up with several plans to restore the Terra ecosystem. However, until now there has been no significant development that can boost the prices of the two digital assets as before.