South Korean Court Exonerates Terra Classic of Violating Capital Markets Act; LUNC Is Not a Security!

Terra Luna Classic (LUNC), a blockchain that rebranded from Terra chain following last year’s collapse, has attracted the attention of global regulators. With Do Kwon already under custody, the attention has significantly shifted to regulating the industry to curb such incidents in the future. Moreover, Kwon does not have assets that can be liquidated to repay the affected customers.

In a bid to keep blockchain and crypto companies in check, a debate is expected to be on whether digital assets should be traded as a security or a commodity.

LUNC is Not a Security

Reportedly, 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.

The ruling is a bold move for the South Korean government that 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 room for discussion on the law interpretation stands.

Price Action

The announcement had a 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, however, far from attaining LUNA’s former ATH of around $119. While most digital assets have recorded positive gains YTD, LUNC price has been on a decline since the calendar flipped.

Bigger Picture

Following the ruling that LUNC is not a security, the XRP community hopes the Manhattan judge could follow a similar path in the SEC vs Ripple case. Furthermore, there are minimal differences between LUNC and XRP in execution.