Terra and UST plummeted to zero in an instant, wiping out tens of billions of dollars in market cap, and a large number of investors who suffered losses began to launch lawsuits. Many key industry players have warned that regulatory pressure on cryptocurrencies may intensify in various countries as a result.

1.

South Korea will be the first country to intensify the pressure. South Korea has been the most fanatical country in the world for cryptocurrencies. Data shows that more than a third of the country's citizens are invested in cryptocurrencies, and it is also the top source of customers for many exchanges with derivatives trading volumes such as Bybit Bitget. The new president was set to ease restrictions on exchanges and 1COs in a bid to gain the votes of young voters. But there has been strong opposition to cryptocurrencies in South Korea as well, and Terra is known to be a project created by South Koreans and Korean capital. The Korean community and investors have lost a lot of money in this event. The top VC hashed lost over $3.5 billion. The government has set up a financial regulatory panel called "Death", the IRS is investigating taxes, the National Assembly has requested Do Kwon to appear for hearings, and several law firms have initiated class action lawsuits on its behalf. This also casts a shadow on the future of cryptocurrency policy friendliness in South Korea.

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Singapore will face regulatory pressure as a concentration of crypto institutions in Asia, and Terra Foundation has previously relocated from South Korea to Singapore. As a result, the Terra main body is also set in Singapore, and thus will generate a lot of international litigation. Singapore has been quite crypto-friendly in the past and has attracted crypto institutions from all over the world, especially from Asia and Greater China. However, in recent years, it has also faced pressure from other countries, leading to targeted crackdowns in Singapore, and Binance 3AC, among others, has moved to Dubai. In the wake of the Terra crash, Singapore's regulatory policies are likely to tighten. More than 1,000 local Singaporean investors have already been reported to the police as having lost money.

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The U.S., the current center of compliance for cryptocurrencies, DeFi and NFT, has also brought together the most capital and large companies. But there have also been traditional central bankers, economists, and veteran investors within the U.S. who have been opposed to cryptocurrencies. after the Terra incident broke out, the Treasury Department, SEC, and other major regulators have let slip that they are trying to tighten regulation on this basis. China's regulators have been keeping a close eye on the USDT-led stablecoin, and the UST crash may also be an excuse for Chinese regulators to step up their crackdown on stablecoins again.