Widespread damage from the Terra-LUNA collapse can be attributed to a poor local regulatory framework, said Lee Sir-goo, CEO of South Korea’s blockchain and fintech company Dunamu Inc. at a special session of the National Assembly.

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Fast facts

  • Lee appeared before lawmakers at the parliamentary session as a witness representing Dunamu’s digital asset trading platform Upbit, the largest crypto exchange in South Korea.
  • When asked by ruling party lawmaker Yoon Sang-hyun if exchanges should face legal consequences for listing tokens such as Terra-LUNA, Lee pointed to regulatory flaws as a contributing factor to the aftermath of Terra-LUNA crash.
  • But Lee did not provide details of these regulatory flaws during his eight-minute question-and-answer session on Thursday.
  • Earlier in the parliamentary session, Lee said that Dunamu has sought legislators’ help for five years to institutionalize crypto for investor protection but made no significant progress.
  • South Korea is accelerating the establishment of its all-new regulation on cryptocurrencies and investor protection after the collapse of Terra’s stablecoin and sister cryptocurrency that affected over 280,000 investors in the country.

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