Due To Terra LUNA Case, South Korea And USA Tighten Crypto Regulation
JAKARTA The collapse incident of TerraUSD (UST) and Terra (LUNA) last May prompted state officials to tighten surveillance regulations against stablecoins and other cryptocurrencies.
According to a recent report, South Korean Justice Minister Han Dong-hoon discussed the issue during his meeting with the US Securities and Exchange Commission (SEC).
The meeting increased cooperation between countries regulators to combat fraud and financial crime. For information, Han Dong-hoon met with the main official from the SEC Task Force during his visit to New York on Tuesday, July 5 yesterday.
Han Dong-hoon is collaborating with a number of agencies in the US to fight bad actors involved in Terra's collapse some time ago.
The collaboration aims to strengthen cross-border exchange of information, doubling investigative efforts on cryptocurrencies and other financial crimes. In particular, Terra, a project being investigated in both countries, has come under the spotlight.
Both sides have also agreed to share their latest investigative data on ongoing cryptocurrencies, including high-profile cases surrounding the destruction of the TerraUSD stablecoin and digital coin partner Luna, wrote Cryptopotato.
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The collapse of two cryptocurrencies developed by Terraform Labs received attention from the supervisory body and global financial authorities. South Korean authorities began an investigation into Terra LUNA's development team last month. Investigations were carried out by the local government, and even one of the key members of the Terra LUNA development team was prohibited from leaving the country.
On the other hand, the SEC is expanding the coverage of its investigations on the Terra-based Mirror Protocol DeFi platform. Law enforcement believes that the protocol violates the Securities Act by offering investors to transact token versions of popular stocks like Tesla and Airbnb.
The investigation continues, the SEC seeks to investigate Terra's founder and CEO, DO Kwon, who was deemed to have violated the investor protection law when he promoted UST and Luna before the two collapsed by more than 99%.
In addition, the UK and US governments have also issued joint statements on strengthening regulatory results for cross-district digital assets. The two authorities expressed concern about the role of stablecoins and trading platforms and crypto-asset loans as the broader market declines have raised issues rooted in a number of problematic projects.
The decline in the crypto market caused a major shock in the crypto industry. This has been proven in recent weeks that a number of crypto trading companies such as Crypto.com, Coinbase, FTX, BlockFi have carried out mass layoffs.