Some experts believe that Terra and LUNA crash could prompt a wave of international crypto regulation. South Korea, the US, and Singapore are already in.
The last crypto collapse has shown that the government should have more power across crypto platforms.
A lot of UST/LUNA investors lost billions of dollars. And nobody seems to defend them properly.
But the good news is Terra founder Do Kwon can testimony to the Korean authorities. And other governments are also planning to regulate crypto.
It’s unknown how it would affect the market. But the general trend is bad.
Right now it seems that the new wave of regulations will start from the East and the US.
Korean tsunami to ignite crypto regulation
South Korea may be the first country to intensify the pressure on the crypto market as more than a third of the country’s citizens own digital assets.
After the Terra collapse, the government has set up a financial regulatory panel called ‘Death’. The Internal Revenue Service now investigates and the National
Assembly has requested Terra CEO Do Kwon appear for hearings. As well as several law firms have initiated class-action lawsuits.
The Singaporean government is also bothered as the Terra Foundation relocated its headquarters from South Korea to Singapore.
Being more than crypto-friendly in the past, right now Singapore faced pressure from other countries. And even crackdown activity of such crypto exchanges as Binance and 3AC, forcing them to move to Dubai.
More than 1000 Singaporean investors have reported to police that they lost money during the Terra collapse. So we can surely wait for more tough crypto regulation inside the country.
It’s possible that this crypto regulation wave can even reach the other side of the Pacific ocean. Lately, the US Treasury Department, the Securities and Exchange Commission, and other major authorities announced tightening their crypto regulations.
And even China regulators are keeping a close eye on the USDT-led stablecoin as the UST crash undermined their trust in the ‘digital dollars’.
What has happened to the new LUNA coin?
As a part of their response to the government, Terra platform decided to revive its system due to the new chain.
But now it seems that their plan isn’t going well.
Being dropped to the market on May 28, the new LUNA 2.0 started trading with an initial price of $18. Then the token value decreased by almost 70%.
It was first listed on the Coinmarketcap with a price of around $18. It has risen then to $19.5 and fell to $8.2 immediately.
But after the minimum of $4, LUNA 2.0 is trading at around $10 at the time of writing.
The investors and the government can hardly be happy about it. But the Kwon’s team has no other way out of it.
So it may be also fueling the future crypto regulation arising.