There is a big hole in the legal responsibility for the 'Luna incident'... measures are

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As you can see, the damaged investors say that the issuer's representative is responsible.

The prosecution is also looking at whether there are any criminal charges, but there are opinions that there are quite a few holes to avoid because the laws and systems for virtual currency are not well established.

Reporter Kim Jung-woo examined the issues with experts.

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CEO Kwon Do-hyeong attracted investors by offering an interest rate of close to 20% per year.

Victims claim that receiving investments without permission or registration could be viewed as a multi-level financial fraud.

But there is a big hole here.

The law stipulates that investors are punished when they receive 'money', which means money in traditional currency.

There is an interpretation that the punishment will be difficult because virtual currency cannot be considered as money yet.

[Park Seong-woo / Attorney: In this case, when you deposit coins, interest is paid in coins rather than cash.

There may be insufficient legal basis for penalizing virtual assets that are not recognized as currency.]

Fraud allegations are also an issue.

If CEO Kwon knew that the Luna coin could plummet at any time and that he might not be able to pay the 20% annual interest as promised, he would be subject to punishment.

However, if CEO Kwon claims he did not know, the investigative agency must gather evidence to prove it.

The government and the National Assembly are also responsible for failing to revise laws and systems until the virtual currency market grows, with transaction amounts exceeding 10 trillion won per day.

[Kim Gap-rae/Research Fellow, Capital Market Research Institute: If only the basic disclosures, unfair trade, and business regulations were legislated, the damage to Luna Terra (situation) today would have been considerably reduced.] He said that he

would fill this gap, protecting investors. Thirteen bills with plans are in the National Assembly, but they have not been properly discussed until this incident.

(Video coverage: Kim Won-bae, video editing: Lee So-young)

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Let's talk more with reporter Kim Jung-woo, who has been covering this content.

[Reporter Kim Jung-woo: Yes.

To protect investors, the government must act quickly.

Even if you look at the task of the transition committee, it is saying that the Investor Protection Act will be enforced only in 2024, two years later.

Therefore, even if the second or third Lunar incident occurs for at least two years, there may be another embarrassing situation where there is no regulation to prevent it, so we have to just look at it.]

[Reporter Kim Jung-woo: Now, just looking at the near US, all institutions responsible for financial supervision, from the finance minister, are advocating such a position that they should protect investors even by expanding the existing laws.

It's because there's something I've learned from the financial crisis.

This is because the financial crisis of 2009 also led to a global economic crisis after financial companies decided to implement new lending techniques.

As a result, there is a strong perception that crises must be managed in advance, but our financial authorities have not yet done such a minimal verbal intervention.]

[Reporter Kim Jung-woo: There are such stories in the cryptocurrency industry.

CEO Kwon Do-hyung also said, "The Luna coin is my 'invention'".

Some people in the industry are also arguing that virtual currency is a new technology, so it has to develop through failures, so we should not be held accountable.

However, cryptocurrency is now considered a financial asset that goes beyond the realm of technology and deeply intervenes in our lives.

And in fact, damage can occur, so it seems that responsibility and regulation appropriate to that weight will be needed.]

▶ "Bigger loss after trusting Kwon Do-hyung, the exchange is also responsible"