Terra Luna crash brings stablecoins under regulatory scrutiny, what next?

Terra Luna, the headline cryptocurrency, has brought stablecoins under regulatory scrutiny from governments and central banks across the world.

Last week, as the TerraUSD de-pegging fiasco unfolded, the cryptocurrency tumbled a whooping 100 per cent and was nearly wiped out.

UK to regulate stablecoin

In light of the mega crash, the British Treasury Department has announced plans for regulating stablecoings. The British Treasury secretary recently said, “Legislation to regulate stablecoins, where used as a means of payment, will be part of the Financial Services and Markets Bill which was announced in the Queen’s Speech.”

US Treasury Secreatry reacts to Terra wipeout

The US treasury secretary, Janet Yellen, also called for stablecoin's regulation amid the recent TerraUSD de pegging fiasco which triggered the Terra Luna wipe out.

Although she stressed on the fact that stablecoins are not yet a threat to financial stability, but she insisted that new regulation is the need of the hour amid this speculative wave.

South Korea joins regulatory bandwagon

Following the Terra LUNA crash amid the UST de-pegging fiasco, South Korea too has stated that it intends to look into some kind of stablecoin regulation. As per local media reports, South Korean financial regulators are undertaking an emergency investigation of cryptocurrencies to expediate the adoption of the "Digital Asset Basic Act."

The cryptocurrency went through a 3300 per cent spike over the weekend after being nearly obliterated in the past week.

Currently, as per data from CoinMarketCap, the token is trading at $0.0002204, 28.08 per cent down in the last 24 hours, as of 4.15 pm IST on Monday.

Also Read: Terra blockchain halted again as crypto TANKS 99.99%  
Also Read: Cryptocurrency markets crash: Terra Luna down 99.99%, will it wipeout?