Terra Luna Classic (LUC), a blockchain that was rebranded from the Terra chain after last year’s collapse, has caught the eye of global regulators. With Do Kwon already in custody, the focus shifted significantly to regulating the industry to limit such incidents in the future. In addition, Kwon does not have assets that can be liquidated to reimburse affected customers.
In an effort to control blockchain and crypto companies, a debate should revolve around whether digital assets should be traded like a security or a commodity.
LUNC is not a security
Reportedly, a South Korean district court has dismissed prosecution claims that Terra Classic’s native LUNC coin is security. The judge noted that there is no substantial evidence that LUNC violated the Capital Markets Act.
The decision is a bold move for the South Korean government which is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
Previously, other South Korean courts have ruled that crypto assets are not securities, although the margin of discussion on the interpretation of the law is maintained.
The announcement had a small positive impact on LUNC price action. According to the latest crypto market update, LUNC traded around $0.00011071 on Monday, down around 2.8% in the last 24 hours. The LUNC price however is nowhere near the old LUNA ATH of around $119. While most digital assets have seen positive year-to-date gains, LUNC price has been declining since the timing reversal.
Following the ruling that LUNC is not a security, the XRP community hopes that the Manhattan judge can follow a similar course in the SEC vs. Ripple case. Additionally, there are minimal differences between LUNC and XRP in execution.