Description of the problem
Recently, the cryptocurrency market has been suffering from a series of accusations from the US regulator SEC. However, one of these cases, which concerns the CEO of Terraform Labs – Do Kwon, has aroused particular interest among the crypto community. The SEC accuses Kwon of illegally selling LUNA securities that were not registered with the SEC.
What is LUNA?
- LUNA is a cryptocurrency used in the Terraform Labs ecosystem, which was launched in 2018.
- Terraform Labs – is a company focused on developing blockchain solutions and decentralized financial services. In 2021, LUNA became one of the most well-known and popular cryptocurrencies on the market.
After receiving the charges from the SEC, Do Kwon demands that the charges against him be dropped. He cites that he was selling LUNA, which is not considered a security in South Korea, so he did not violate SEC laws.
Differences in regulatory approaches to cryptocurrencies around the world are not new. However, the SEC’s accusations have prompted a discussion of the need for global regulation of the cryptocurrency market.
Thus, the issue of LUNA’s registration with the SEC and its recognition as a security remains open. Under U.S. law, issuing companies must comply with the SEC’s registration and disclaimer rules. If LUNA fails to register with the SEC, this could have serious consequences for the company and its investors.