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US, South Korea to cooperate over Terra investigation

Legal

cryptoslate.com 06 July 2022 13:00, UTC
  
Reading time: ~2 m

U.S. and South Korean authorities have agreed to collaborate on the investigation of Terra’s implosion, South Korea’s Yonhap News Agency reported July 6.

South Korea’s Justice Minister Han Dong-hoon met with Andrea Griswold, co-chief of the Securities and Commodities Task Force, and Scott Hartman, chief of the Securities and Commodities Fraud Task Force, at the U.S. Attorney’s Office for the Southern District of New York.

Yonhap News Agency added that the two countries agreed to share investigation data about the Terra (LUNA) network crash, which led to about $40 billion in losses.

South Korea is investigating the possibility of fraud, tax evasion, and market manipulation on the part of Terraform Labs, while the US is probing Do Kwon and whether TerraUSD breached certain regulations.

More regulation

Meanwhile, Terra’s crash has birthed new crypto regulation efforts in several countries. South Korea has formed a new crypto committee to assess the crypto projects listed on crypto exchanges.

In the US, there are reports that the government is working with Congress to formulate new stablecoin legislation that could come into effect before the end of this year.

The United Kingdom government proposed several legislative amendments for crypto firms, including stablecoin issuers. Singapore’s financial regulator is considering new blanket regulations to protect retail investors.

Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) framework seeks to impose redemption reserve requirements on stablecoins to cover withdrawals as well as a threshold for the daily transactions for the largest operators.

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