Korean crypto exchanges may face legal issues because of Terra collapse

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

South Korea is a highly crypto-friendly country in the world but here laws are highly strict to ensure the safety of the investors on crypto exchanges and also to prohibit the illegal use of cryptocurrencies, like money laundering or terrorist funding. Even the rules to list the new crypto assets on the South Korean exchanges took huge time because of the lengthy documentation process.

On 23 May, Local news media outlet Newspim reported that the ruling party of South Korea scheduled a meeting between the several executives of Crypto exchanges to discuss the collapse of the Terra ecosystem, which resulted in a huge loss for the citizens. 

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

Today was the scheduled date for this meeting. Reportedly the meeting will figure 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 assets committee, said that they will check the sideways steps of Korean crypto exchanges, where they failed to stop the loss for the crypto investors.

He said:

“We will check (the exchanges’) investor protection measures,”

Earlier this, Yoon said that crypto exchanges did not take suitable action against the risky situation, where trading of Terra’ UST & Luna coin trade was not safe for the crypto traders. 

Now it will be interesting to see the result of this meeting because on one side usual high panic & high sell pressure resulted in the collapse of Terra’ Native & stable coin downfall, on the other hand, crypto exchanges were able to stop the trading under that situation to keep crypto traders under the safe zone. 

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