South Korea’s ruling party wants the country’s parliament to hold a hearing on the TerraUSD collapse

According to Yun Chang-Hyun, a representative from Korea’s ruling People’s Party, it is very likely that South Korea will open a congressional hearing on TerraUSD (UST) following the sudden collapse of stablecoins last week.

South Korean politician calls for Do Kwon to attend the hearing on TerraUSD’s collapse

According to industry sources, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are conducting an urgent inspection of transactions linked to TerraUSD (UST) and Terra ( LUNA) including trading volume, closing price, and several investors involved.

The move comes after UST and LUNA tumbled, causing huge losses for investors and sending shock waves worldwide.

“We should bring related exchange officials, including CEO Do Kwon of Terra, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors,” Chang-Hyun said at a plenary meeting of the National Assembly’s Political Affairs Committee. 

At the moment, Korean cryptocurrency exchanges have also stopped trading these two tokens. Accordingly, Coinone, Korbit, and Gopax stopped trading on May 10 and Bithumb on May 11, but Upbit did not stop trading until May 13. The reason is probably that many investors are still trading and want to buy the dip LUNA, and of course, the most profitable are the exchanges with commissions and transaction fees.

Accordingly, the local financial regulator has conducted “emergency checks” on local crypto exchanges to strengthen investor protection after the collapse of the UST. “Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures,” an anonymous official of a local crypto exchange said. “I think they did it to draw up measures to minimize the damage to investors in the future.”

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