The UST crash event has raised global regulatory concerns, with multiple countries taking action.

Recently, the algorithmic stablecoin UST running on the Terra blockchain experienced a severe de-pegging event, attracting close attention to the cryptocurrency market globally. This incident not only had a significant impact on the crypto space but also drew high attention from regulatory agencies in various countries.

UST plummeted from $1 to $0.04 in just 5 days, a depegging of 97.7%. The related LUNA coin also suffered a catastrophic collapse, dropping from $119 in early April to a price close to zero. This event caused a massive shock to the entire cryptocurrency market.

As the situation develops, regulatory agencies in various countries are taking rapid action. The South Korean Financial Services Commission and Financial Supervisory Service have launched emergency inspections of local cryptocurrency exchanges, demanding transaction information related to UST and LUNA. The South Korean political sphere is also calling for a parliamentary hearing on the matter to investigate the causes of the incident and discuss investor protection measures.

In the United States, the Treasury is re-examining legislation regarding stablecoins, and the Federal Reserve mentioned the issue of stablecoins in its latest Financial Stability Report. The Securities and Exchange Commission reiterated the principles of investor protection. Treasury Secretary Yellen directly referenced the TerraUSD incident, emphasizing the need to impose bank-like regulatory requirements on stablecoin issuers.

European countries have also responded quickly. The UK Treasury has confirmed that it will regulate stablecoins with the premise of supporting innovation, but will exclude algorithmic stablecoins. The head of the French central bank revealed that the G7 meeting will discuss cryptocurrency regulatory issues.

This series of reactions indicates that the UST collapse event has raised high vigilance among global regulatory agencies. Countries are actively discussing how to formulate a reasonable cryptocurrency regulatory framework while protecting investor interests and maintaining financial stability.

In the future, we may see more regulatory measures introduced for stablecoins and cryptocurrencies. These measures could have far-reaching impacts on the entire cryptocurrency ecosystem, including potentially restricting the issuance and circulation of certain types of stablecoins.

The cryptocurrency industry is facing unprecedented regulatory pressure and challenges. Finding a balance between innovation and risk control will be an important issue that regulators and industry participants must confront together.