It has been almost 5 months since the Terra Network crash took place. Even when so many months have passed, the cryptocurrency industry has not come out of the dark times created by the Terra crash.
South Korea was Impacted the Most
Among the countries that have been impacted by the Terra network crash, it is South Korea, which seems to have suffered tremendously.
South Korea is among the countries who had been on high alert due to the growing adoption of cryptocurrencies by the locals.
From time to time, South Korea issues warnings for cryptocurrency investors in South Korea to remain cautious and vigilant.
Although the communities were vigilant, they were not ready to face the Terra Network crash. Thousands of investors in South Korea were left with huge losses as Terra (LUNA) and TerraUSD (UST) crashed.
After the crash, several investors unhappy and doubtful of the crash filed lawsuits against its founder and multiple executives.
South Korean Legislators are Unhappy
The Terra Network crash has literally angered the legislators and legal prosecutors in South Korea.
In light of the recent events, the regulatory authorities in South Korea want to come up with stricter policies surrounding cryptocurrencies.
The main emphasis of the investors is the safety of the local investors as they invest in digital assets and cryptocurrencies.
In addition to ensuring more safety for investors, the regulators also want to introduce stricter policies against cryptocurrency firms.
Most importantly, they want to introduce penalties that would prove to be stricter and harsher than before. These penalties would be for firms in the crypto industry who intend to defraud locals.
The National Assembly and the FSC Work Together
The reports are claiming that the National Assembly and the Financial Services Commission (FSC) are working together to come up with a new bill surrounding crypto regulations.
The new bill is going to be much more detailed surrounding the regulations and the monitoring of cryptocurrency firms.
The purpose of the new bill is to grant more power and access to the financial authorities in South Korea.
They will be able to monitor the operations of crypto firms in the country and identify the entities that are being unfair with their claims or operations.
If any firm is identified to be running a fraud, strict actions would be taken against them. The regulators would ensure that none of the firms in the country offering crypto services are involved in unfair trade practices.
Unfair Trade Activities
The unfair trade activities that the regulator wants to counter include fraud, price manipulation, and undisclosed information.
The new bill would also allow the regulatory authorities to supervise cryptocurrency exchanges.