Korean finance regulator will check on Terra and related exchanges

The Financial Supervisory Service (FSS) of South Korea will perform an on-site inspection of Terraform Labs and financial services linked to TerraUSD (UST) or LUNA.

S. Korea finance regulator to audit Terra and related exchanges

The FSS said at an emergency Congressional meeting on Tuesday that the audit aimed to prevent damage caused by Terra-LUNA debris from spilling into financial markets. Korean regulators acted with more urgency as local investors are said to have lost huge savings in the UST devaluation.

The financial authority said it intends to tap a third-party organization to increase domestic and global cryptocurrency market oversight. The FSS adds that it plans to categorize cryptocurrencies by risk categories.

The FSS said that digital asset management and industry risks are limited due to inadequate legislation, speculative transactions, and incomplete disclosures such as white papers. The Korea Fair Trade Commission (KFTC) also pledged to review “unfair” terms and conditions in local cryptocurrency exchanges at its meeting Tuesday.

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