South Korea Begins Inspections of Local Crypto Exchanges

South Korea’s Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have launched “emergency” inspections into local crypto exchanges.

The move is reportedly linked to the recent collapse of Terra’s native TerraUSD (UST) algorithmic stablecoin and its governance token LUNA.

The move aims to ensure better protection for investors.

As many as 200,000 investors in South Korea are estimated to have invested in TerraUSD and LUNA.

The Korean financial authorities admit that there’s not much they can do right away in terms of investor protection.

The latest events surrounding Terra may, however, result in a quicker establishment of South Korea’s “Digital Asset Basic Act,” which is reported to be approved in 2023 and take effect by 2024.

The upcoming legislation is expected to include provisions for a 20% tax on digital assets and insurance for users.