South Korean Government Considers Uniform Listing Standards for Cryptocurrency Exchanges After LUNA, UST Collapse – Regulated Bitcoin News

Following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST), the South Korean government is considering stricter regulations for all cryptocurrency exchanges in the country, including unified listing standards.

South Korean government meeting with cryptocurrency exchanges

The South Korean government is shifting the blame for the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST) to cryptocurrency exchanges, The Korea Times reported Thursday.

South Korea’s National Assembly and government held an emergency meeting on Tuesday with the heads of the country’s major cryptocurrency exchanges to discuss measures to prevent the LUNA and UST implosions from happening again. The message from the publication, however, is that lawmakers and financial authorities appear to support tighter regulation of cryptocurrency exchanges.

The South Korean government has criticized cryptocurrency exchanges for being slow to respond to the collapse of the two cryptocurrencies. Several top South Korean cryptocurrency exchanges did not delist LUNA until two weeks later. Some critics said they deliberately delayed the delisting to get more commissions from the incident.

Rep. Yoon Chang-hyun of the ruling People’s Power Party expressed concern over the ambiguity of listing and delisting standards for cryptocurrency exchanges. He emphasized:

The exchanges do not have uniform listing standards and have not negotiated the issue.

Responding to discussions among lawmakers about implementing uniform listing standards on domestic cryptocurrency exchanges, Lee Sirgoo, CEO of Dunamu, which runs the country’s top exchange Upbit, explained that this will not solve the problem. “Crypto assets can be sent to overseas exchanges, and many crypto investors are already using exchanges that are not headquartered in South Korea,” he said.

“We need to allow exchanges to play their due role, and for that, it’s critical that regulators oversee them thoroughly,” Rep. Sung Il-jong from the People’s Power Party reportedly told the meeting. He added:

In the event of violations, the exchange shall bear legal responsibility to ensure the normal operation of the market without any problems.

Kim So-young, vice chairman of the Financial Services Commission (FSC), South Korea’s top financial regulator, said: “We will establish close ties with the Ministry of Justice, prosecutors and the police to monitor any illegal activities. Engage in industry activities and protect investors’ rights.”

An official of a domestic cryptocurrency exchange said: “In this period of time without specific regulatory guidelines, exchanges are easy targets for criticism.” He added:

We understood the purpose of the meeting, but the most urgent step was to convene company co-founder Do Kwon as soon as possible.

The National Assembly plans to hold hearings on the LUNA incident in the near future. However, the publication noted that Do Kwon is unlikely to be present as his whereabouts are unknown.

Do you think there should be a unified listing standard for South Korean cryptocurrency exchanges? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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