Breaking: South Korea launches “emergency” inspection after Terra's LUNA and UST collapse

South Korea's financial authorities have launched "emergency" inspections into domestic cryptocurrency exchange operators to enhance investors' protection after the recent collapse of the TerraUSD and Luna cryptocurrencies, sources said Tuesday. The move came after TerraUSD and LUNA's death spiral caused massive losses to investors and sending shockwaves across the world.

According to industry sources, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have recently asked local cryptocurrency exchange operators to share information on transactions linked to TerraUSD and LUNA, including the volumes of their trading, their closing prices and the number of relevant investors. The top financial regulators have also asked them to provide their countermeasures to the recent market crash and analyses of what caused the collapse.