The current collapse of the Terra ecosystem has drawn the eye of regulators worldwide! Finance ministers of the G7 nations are assembly forward this week and shall be discussing crypto property on a precedence foundation.
Reuters quoted the French central financial institution head Francois Villeroy de Galhau saying this on Tuesday, May 17. While talking at an rising market convention in Paris, Villeroy said:
“What happened in the recent past is a wake-up call for the urgent need for global regulation. Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably … discuss these issues among many others at the G7 meeting in Germany this week”.
The current collapse of TerraUSD (UST) stablecoin worn out billions of {dollars} in buyers’ wealth inside a matter of only one week. Following it, regulators throughout the globe have been on a excessive alert.
Regulators Alert After Terra Collapse
South Korea has already initiated a high-level investigation into the matter! A South Korean politician, Yun Chang-Hyun, a consultant from South Korea’s ruling People Power Party, has additionally demanded a parliamentary listening to of Terra founder Do Kwon.
At the identical time, regulatory our bodies like Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) shall be inspecting the native crypto exchanges. Speaking to native publication Yonhap News, a spokesperson for the monetary authorities mentioned:
“In regards to the Luna incident, we are monitoring the overall situational changes, but there isn’t a direct measure the government can take at this moment. There is no ground for the government to intervene because coin transactions are being freely operated by the private sector.”
Demand for Stablecoin Audit Grows
After all that transpired within the crypto area final week, the demand for stablecoin audits has grown. There’s been a long-time conspiracy going across the precise USD reserves in retailer for the Tether (USDT) stablecoin.
Post the TerraUSD (UST) collapse, market gamers are demanding that every one current stablecoin suppliers ought to conduct a good audit. Ki Young Ju, CEO of CryptoQuant not too long ago tweeted the identical asking whether or not USDT is absolutely backed or not. Responding to it, Tether CTO Paolo Ardoino said:
“We have redeemed 7B in 48h, without the blink of an eye. How many institutions can do the same? We can keep going if the market wants, we have all the liquidity to handle big redemptions and pay all 1-to-1. Yes, Tether is fully backed”.
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