Yun Chang-Hyun, a deputy from the ruling party in South Korea, called for a parliamentary session on the Terra ecosystem, which suffered a collapse last week.

According to local news sources, Chang-Hyun requested to summon Terra CEO Do Kwon and other officials to the National Assembly to discuss the cause of the situation and measures to be taken to protect investors regarding the Terra collapse, which has become a major problem.

The Terra crisis erupted on May 7 when the algorithmic stablecoin of the Terra Blockchain network, UST, lost its dollar peg. Despite the Terra team using almost all of their reserves to maintain stability, UST sales continued to increase and the stablecoin fell below 10 cents. The altcoin is still trading at less than 10 cents today.

Do Kwon

The LUNA token, which is used as an UST reserve, was also heavily affected by the drop, losing almost all of its value. LUNA is currently at a fractional price level.

Yun Chang-Hyun also thinks that how cryptocurrency exchanges are doing in this crash should be looked at. Because, among the largest South Korean exchanges, Coinone, Korbit and Gopax stopped trading on crypto assets, which saw a sharp decline on May 10, and Bithumb on May 11. It is emphasized that Upbit, the largest stock exchange in South Korea, continues to trade until May 13. Chang-hyun added that these exchanges earned close to $7.8 million in commission income in just 3 days.

Another local news source reported that regulators launched an emergency investigation to protect investors of cryptocurrency exchanges operating in the country after the Terra crash. According to the report, the Korea Financial Services Commission (FSC) and Financial Supervisory Service (FSS) requested detailed information from crypto exchanges about transactions associated with UST and LUNA.

Recent developments indicate that South Korean authorities are investigating the Terra collapse in detail. As a result of the investigations made, some sanction decisions may be taken in the country in the coming days.