The Republic of South Korea is strengthening its probe of the cause of the TERRA (LUNA) crisis. The plunge in the asset price allegedly threatens to incite widespread investor withdrawals from the blockchain-powered gaming company.
The country has received reports on the crisis that hit the digital assets market and led to LUNA’s de-pegging. The digital asset’s value crash reportedly led to unstable trading activities over different trading platforms. Blockchain technology-powered gaming firms are reportedly the most hit by the crisis that grossly affected the digital assets’ market price.
The Resulting South Korean Crypto Market Landscape
The crash in LUNA’s market worth reportedly affected more industry stakeholders than conventional investors. Apart from individual traders, expert analysis says that two blockchain technology-powered gaming companies lost a chunk of their assets in the currency crash.
Moreover, there’s widespread fear among industry stakeholders that the crisis could lead to a massive withdrawal of investors and potential digital asset holders from the Blockchain technology-powered gaming system. Terra, the company backing the virtual asset, announced that it was executing an autopsy on the event to investigate the cause of the crash.
It also said it would publish its findings soon after it prepared them. The host company reportedly ventured to connect with the asset holders affected by the challenging turn of events.
Terra further encouraged users to be security-conscious in their subsequent virtual assets dealings. Moreover, the company warned the public through its Twitter page to pay no attention to any information about the crisis from any other source than its official Twitter account.
Is South Korea Adopting Digital Assets?
Reports say that South Korea’s newest leader, Yoon Suk-yeol, who won the country’s elections earlier this year, intends to advance his plans to adopt digital assets in South Korea.
During the build-up to the elections, President Yoon Suk-yeol reportedly promised to create regulations to enhance the buying and selling of all categories of digital assets in South Korea. He also said he would establish legislation to govern other operations of the digital assets in the industry other than trading activities.
Suk-yeol recently announced plans to approve formerly-banned initial coin offerings (ICO) in the country. The new leader’s announcement comes as a sharp turn in the Asian nation’s digital asset industry regulations.
South Korea placed restrictions on the utility of ICOs in 2017. However, the recent announcement of the nation’s leader comes in stark contrast to the ban on ICOs and other digital assets.
South Korea is reportedly one of the most notable countries in the cryptocurrency world. Statistics show that about one-tenth of South Koreans actively use digital assets.
Moreover, 2023 could bring more positive events for the digital assets industry as leaked documents show that the country is preparing legislation for the digital assets industry. There are also rumors of a digital fiat currency in the pipeline for the Asian nation.