South Korea Launches Unscheduled Audits of Crypto Exchanges

The authorities of South Korea have started emergency inspections of local cryptocurrency exchanges, Yonhap has reported.

The purpose of the checks is to protect investors from repeating what happened with the stablecoin TerraUSD (UST) and its governing token LUNA.

According to an unnamed representative of the South Korean cryptocurrency exchange operator, financial authorities have asked exchanges for data on transaction amounts and investors, as well as what security measures the companies apply to their users.

According to the source, financial regulators are trying to develop measures to minimize damage to investors in the future.

Last week, the Terra network collapsed when the UST stablecoin peg to the dollar broke. UST has practically depreciated, falling to $0.15, while the price of the LUNA governance token has dropped to almost zero.