The Terra ecosystem’s sudden collapse has drawn the attention of regulators all around the world! The G7 finance ministers will gather this week and will consider crypto assets as a top concern.
On Tuesday, May 17, Reuters quoted French central bank director Francois Villeroy de Galhau as saying this. Villeroy, addressing a Paris conference on emerging markets, declared:
“What happened in the recent past is a wake-up call for the urgent need for global regulation. Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably … discuss these issues among many others at the G7 meeting in Germany this week.”
The recent collapse of the TerraUSD (UST) stablecoin wiped out billions of dollars in investor capital in less than a week. Regulators all across the world have been on high alert since then.
A high-level probe into the subject has already begun in South Korea! A South Korean lawmaker, Yun Chang-Hyun, a member of the ruling People Power Party, has also urged that Terra creator Do Kwon be heard in parliament.
Following the events of the previous week in the crypto realm, the demand for stablecoin audits has increased. The actual USD reserves in store for the Tether (USDT) stablecoin have been the subject of a long-running conspiracy.
Following the collapse of TerraUSD (UST), market participants are requesting that all existing stablecoin suppliers conduct a thorough assessment. Ki Young Ju, the CEO of CryptoQuant, recently asked if USDT is completely backed or not. Tether CTO Paolo Ardoino responded by saying:
“We have redeemed 7B in 48h, without the blink of an eye. How many institutions can do the same? We can keep going if the market wants, we have all the liquidity to handle big redemptions and pay all 1-to-1. Yes, Tether is fully backed.”