The “long waves” of the May 7 TerraUSD crash that we noted two newsletters ago are spreading even further. There have been some notable reactions to the depegging of the stablecoin in the East Asia region over the past week.

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Chinese government publication Economic Daily reported that the Chinese government may impose even tighter regulations on cryptocurrencies and stablecoins due to the collapse of the Terra ecosystem. According to some experts, this could even mean a complete ban on stablecoins to prohibit the ownership, transfer, purchase and sale of assets. What China is planning, Japan is doing, as the new law will restrict the issuance of stablecoins by licensed banks, registered money transfer agents and trust companies.

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Not surprisingly, South Korea, the birthplace of Terra’s creator, was also among the first nations to respond. Amid signs that Terraform Labs co-founder Do Kwon is running into legal trouble in South Korea, the country’s ruling party has announced the formation of a Digital Assets Committee tasked with overseeing cryptocurrency until a permanent government agency is established. . This is at the same time that the National Financial Supervisory Authority is requiring 157 payment gateways to report on any cryptocurrency-related services, its future plans, and disclosure of digital assets.

An open letter from crypto critics

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From 2018 to 2021, the budget spent on crypto lobbying has grown from $2.2 million to at least $9 million, and this has not gone unnoticed. A group of scientists, software developers and technology experts decided to write an open letter to lawmakers in Washington, urging them to resist lobbying pressure and attempts to create a “regulatory safe haven” for cryptocurrency. The crypto community did not remain silent and expressed its disagreement with the letter and its content – unfortunately, in some cases repeating itself, calling the co-authors “trolls” and “attention seekers”.

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401(k) will fight for cryptocurrency in court

The US Department of Labor’s March warning to 401(k) providers to stay away from cryptocurrencies in their portfolios provoked strong opposition from a range of industry supporters, from congressmen to trade associations. But ForUsAll, a 401(k) pension provider whose cryptocurrency is already available to its customers, went even further and sued the Department. Company Seeks Withdrawal of DOL Compliance Assistance releasewhich explains that the Department’s Employee Benefits Security Administration may “conduct an investigation program” against 401(k) plans containing cryptocurrencies.

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One step closer to a mining moratorium in New York

Two months after it was passed by the lower house, the Mining Ban Bill was approved by the New York State Senate. That means no to any new mining operations in the state over the next two years, but anyone using 100% renewable energy is spared the ban. Will other states follow New York and ban PoW mining to save the environment? This is of course not impossible. Although the European Parliament was forced to cancel a similar plan after it faced resistance.

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There is even more in the full Cryptooshala Law Decoded newsletter. To receive the Cryptooshala newsletter on blockchain and crypto policy developments straight to your inbox, subscribe below!