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 the National Assembly’s parliamentary audit on the Financial Services Commission.
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.
