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Korea is taking protective measures to prevent another collapse similar to LUNA

To prevent a catastrophic crash similar to LUNA, South Korea’s financial authorities are taking stricter measures. Measures to provide legal protections in the wake of LUNA’s collapse were published by the Korea Times.

The news release states that government financial authorities are planning to put in place more regulatory protections for the crypto industry. Measures that will increase supervision around exchanges to prevent an incident similar to the collapse of the Terra ecosystem include UST and LUNA.

Luna’s fall is a wake-up call

We need to make the exchanges play their proper role, and to that end, it is important that the watchdogs monitor them closely. When exchanges break the rules, they are legally responsible to make sure that the market works properly without any trouble.

The two-day meeting, which ends on Tuesday, aims to review measures to overcome the current financial crisis involving the two cryptocurrencies. The rapid decline of the once-promising coins is said to have affected more than 280,000 South Korean investors.

Since the crypto industry is unregulated and not controlled by any supervisory authority, the need for an urgent regulatory and framework is a daily need.

During its heyday, Luna’s market cap hit 50 trillion won last month, but it plummeted to almost nothing in just a week after Terra failed to sustain a 1 dollars as expected.

The conference was also attended by the leaders of the country’s five main exchanges, as well as government officials, including Financial Services Commission Vice Chairman Kim So-young.

The collapse of the Terra ecosystem prompted the authorities to further investigate Terraform Labs and Do Kwon. South Korean police have also asked crypto exchanges to freeze the assets of Luna Foundation Guard because the police received clues linking the fund to the possibility of embezzlement.