[2022 National Audit] Removing Investor Protection Measures and Entering the Crypto Market After Retirement?..."Introducing Terra Special Investigation"

[Asia Economy Reporters Ji Yeon-jin and Lee Jung-yoon] There have been calls to introduce a special prosecutor system to hold financial authorities accountable for the Terra and Luna incidents.

[Image source=Yonhap News]

On the 6th, during the National Assembly's Financial Services Commission audit held by the National Assembly's Political Affairs Committee, Yoon Sang-hyun, a member of the People Power Party, stated, "The responsibility for the Terra incident lies with four main parties: politicians who supported stablecoins, government agencies that failed to establish safety measures, financial institutions that provided loans, and exchanges that focused on profit without addressing the technical issues of the coins." He added, "It is necessary to share the damages even now, and a Terra special prosecutor should be introduced to identify those responsible."

Yoon criticized, "The structure of cryptocurrency exchanges is different from that of capital market transactions, as they monopolize listings, disclosures, and even the securities settlement system," calling it "a structure where the referee also plays as a player."

He further stated, "During the Park Geun-hye administration, when securities-type cloud funds were approved, measures were put in place to protect investors with less than 20 million won, but these protections were removed during the Moon Jae-in administration," and criticized, "Please investigate who led this at the Financial Services Commission. They removed these investor protection measures while still in office and are now working at those companies."

In response, Kim Joo-hyun, Chairman of the Financial Services Commission, said, "While many agree with the member's claims regarding cryptocurrencies, it is important to leave room for the development of cryptocurrency-related technologies and find common ground," adding, "We will consult with the National Assembly to establish institutional measures that can prevent problematic situations that the public can sympathize with."