The collapse of TeraUSD has prompted financial authorities in South Korea to launch an “emergency” inspection of domestic cryptocurrency exchanges.
South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have requested information from local cryptocurrency exchange operators on transactions involving TeraUSD and Luna. This includes data relating to their trading volume, their closing prices and the number of investors concerned.
There was also a request for the exchanges’ response to the market crash and an analysis of the reasons for the collapse by the country’s financial regulators.
“Last week, financial authorities sought data on volume of transactions and investors, and the relevant sizing measures of exchanges,” a local exchange official said. “I think they did this to devise measures to mitigate the losses that could be caused to investors in the future.”
TeraUSD Collapse
The emergency audit was the result of the collapse of the TeraUSD stablecoin and its sister Luna. The post-crash global crypto markets were estimated to have evaporated around $45 billion. Estimates suggest that around 200,000 in South Korea had invested in TeraUSD, which was made by a South Korean citizen.
Recently, the head of FSS Jeong Eun-bo told senior executives that the recent crypto market debacle could undermine confidence in the markets overall. As a result, Jeong said the regulator must determine its exact causes and effects, despite constraints caused by the lack of relevant regulations.
He also stressed the need for greater cooperation with foreign authorities regarding effective market regulation given the international nature of cryptocurrency trading.
President’s Pushback
Meanwhile, the pro-crypto pledge of South Korea’s new president has received some setback. Yoon, who won the presidency in March and was inaugurated this month, said he would raise the tax limit for crypto investment gains to 50 million, or about $39,000.
However, South Korea’s National Assembly Research Service (NARS) says the tax limit for income generated from digital assets should be 2.5 million won, or $1,946, according to a notice posted last week.
Because the service, which provides information and analysis on legislative and policy issues to lawmakers, classifies crypto as a virtual asset, it believes a tax rate of 20% at the same level as other financial investment income. Is.