• South Korean court exonerated Terra Classic of violating the Capital Markets Act, ruling that its native coin LUNC is not a security.
• The ruling is a positive move for the South Korean government, which is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
• The announcement had little effect on the LUNC price action as it continues to remain far from attaining LUNA’s former ATH of around $119.
South Korean Court Rules LUNC Is Not a Security
A South Korean district court has rejected the prosecution’s claims that Terra Classic’s native coin LUNC is security. The judge noted that there is no substantial evidence that LUNC has violated the Capital Markets Act. This ruling is a bold move for the South Korean government, which is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
Little Impact on Price Action
The announcement had little positive impact on the LUNC price action. According to the latest crypto market update, LUNC traded around $0.00011071 on Monday, down approximately 2.8 percent in the past 24 hours. The LUNC price is far from attaining LUNA’s former ATH of around $119, although most digital assets have recorded positive gains YTD.
Debate Over Digital Assets
In an effort to keep blockchain and crypto companies in check, a debate is expected to be on whether digital assets should be traded as securities or commodities. With Do Kwon already under custody, attention has significantly shifted to regulating this industry to curb such incidents in the future as he does not have assets that can be liquidated to repay affected customers.
XRP Community Hopes For Similar Outcome
Following this ruling that LUNC is not a security, XRP community members hope Manhattan judge could follow a similar path in SEC vs Ripple case due to minimal differences between these two coins in execution.
Conclusion
This ruling by a South Korean court may provide some relief for those who are involved with cryptocurrencies and blockchain technologies but more regulation might be needed before we can see any real progress made towards making these markets safer and more secure for everyone involved .