Coin industry "Luna-Tera will disappear"... Government accelerates Digital Assets Act

The investment amounted to 40,000 won in a moment. I just hope for a dramatic rebound just before the delisting," and "The coin market will be hit with reality (realization time) as it was traded at 0.1 won from 100,000 won earlier this month." On the 15th, online communities where virtual asset investors gathered posted a series of articles saying that they invested in Kimchi Coin (Korean virtual asset) "Luna" and became pieces of tissue.

Coin exchanges around the world have begun to delist one after another as investor damage snowballed due to the plunge in the virtual asset Luna and sister coin "Tera" developed by a Korean engineer. Domestic financial authorities are also planning to speed up the preparation of the "Basic Act on Digital Assets," which includes investor protection, while conducting an emergency inspection.

According to Bloomberg and others on the 13th (local time), Coinbase, the largest virtual asset exchange in the U.S., has decided to stop trading Tera, a sister stable coin (coin designed to be linked to legal currencies such as dollars), with Luna from the 27th. OKX, a large global exchange, has already delisted Terra and has also expelled Luna, anchors, and mirrors linked to Terra. Singapore's exchange Crypto Dotcom also suspended trading of Luna, Anchor and Mirror.

Cryptocurrency prices are displayed on the billboard of Bithumb Customer Center in Gangnam-gu, Seoul on the 12th, when Bitcoin is on a downward trend due to the U.S. interest rate hike and the Luna Coin crisis. 2022.05.12 Newsis

Domestic coin exchanges also designated Luna and Terra as investment-oriented stocks one after another and decided to delist them. Upbit, the largest exchange in Korea, announced that it will stop trading Luna from 12 p.m. on the 20th. Upbit explained, "As transaction support for Luna is terminated on overseas exchanges, there is a risk of rapid market fluctuations." Bithumb decided to end transaction support for Luna and Terra from the 27th and Gopax from the 16th.

As of 3 p.m. on the 15th, Luna was traded at 0.8 won on Upbit. It was traded at around 100,000 won until the 6th of this month, but it became a "tissue piece" that was less than 1 won in a week. Terra, which was designed to be linked to a dollar value, fell 85% to 0.14 dollars.

Prices rebounded briefly when Binance, the world's largest exchange, stopped trading with Luna and Terra on the 13th and resumed in a day, but the industry expects these coins to disappear. An official from a local exchange said, "It is virtually impossible for Luna and Terra to resume trading."

As concerns grew that the plunge of Luna and Terra would become a detonator of the virtual asset market, the Financial Services Commission and the Financial Supervisory Service began an emergency trend check. However, for now, financial authorities do not have legal authority to demand or supervise data from Luna and Terra Form Labs, a blockchain company that issued Terra. An official from the financial authorities said, "We will make consumers aware of the risks of coin investment."

In particular, the enactment of the "Basic Act on Digital Assets" promoted by the Yoon Seok-yeol government is expected to gain momentum. An official from the financial authorities said, "As the need for supervision and consumer protection of the coin market has grown, the situation will be reflected in the parliamentary legislative process in the future." Considering the movements of central banks and the Bank for International Settlements (BIS) in major countries, the authorities plan to draw up a basic government plan for digital assets to incorporate virtual assets into the system this year.

Date: 2022-05-16

Reporter: 신정훈