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TerraUSD Collapse Unnerves Users, Regulators – Nikkei

TerraUSD had a value of $1, with a market value of nearly $19 billion at its peak, before it plunged the whole of last week and ended at just 16 cents on Friday


Australia plans to do a virtual stocktake of crypto holdings in the country before moving to regulate the sector.
Australia has wrestled for years with the question of how to regulate cryptocurrency. File photo: Reuters.

 

The plunge in the value of TerraUSD, one of the biggest cryptocurrencies, has strengthened the resolve of regulators around the world wanting to tighten oversight of the crypto trading system, Nikkei Asia reported.

TerraUSD had a market value of nearly $19 billion at its peak, before it plunged last week from $1 per token to just 16 cents on Friday. US Treasury Secretary Janet Yellen said stablecoins – which, like TerraUSD, are tokens pegged to fiat currencies such as the US dollar – present risks to the traditional finance system, the report said.

 

Read the full story: Nikkei Asia.

This report was updated on Monday May 16 to improve clarity.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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