Following the collapse of the cryptocurrency Terra (LUNA) and stablecoin Terasd (UST), the South Korean government is considering implementing stricter regulations, including a unified listing standard, on all cryptocurrency exchanges in the country.
Korean government meeting with cryptocurrency exchanges
The Korea Times reported on Thursday that the South Korean government is shifting responsibility for the crashes of the cryptocurrency Terra (LUNA) and the algorithmic stablecoin Terasd (UST) to crypto exchanges.
The Korean National Assembly and government held an emergency meeting on Tuesday with the heads of major crypto exchanges in the country to discuss measures to prevent a recurrence of the LUNA and UST explosions. However, lawmakers and financial authorities favored the imposition of stricter regulations on crypto exchanges, the publication reported.
The Korean government has criticized crypto exchanges for delaying its response to the collapse of the two cryptocurrencies. Several top Korean crypto exchanges did not delist LUNA until two weeks later. Some critics said that he deliberately delayed the event in order to collect more commissions.
Yun Chang-hyun, a representative of the ruling People Power Party, raised concerns over the unclear listing and delisting standards of crypto exchanges. He emphasized:
The exchanges do not have a unified listing standard, nor do they negotiate the issue.
Responding to lawmakers’ discussion about implementing a unified listing standard across domestic cryptocurrency exchanges, Lee Sirgu, CEO of Dunamu, which operates the country’s top exchange, Upbit, explained that it will not solve the problem. “Crypto assets can be sent to foreign exchanges, and many crypto investors are already using non-Korean headquartered exchanges,” he said.
People Power Party representative Sung Il-jong reportedly said during the meeting: “We need exchanges to play their due roles, and to that end, it is important for watchdogs to monitor them thoroughly.” He added:
When exchanges violate regulations, they must be held legally responsible for ensuring that the market operates well without any hassles.
Kim So-young, vice chairman of the Financial Services Commission (FSC), the country’s top financial regulator, said: “We are going to build closer ties with the Ministry of Justice, prosecution and police for any illegal surveillance. Serves industry and Protects the rights of investors.
An official from one of the domestic cryptocurrency exchanges said: “Exchanges can easily become the target of criticism in a period when no specific regulatory guidelines have been introduced.” He added:
We understand the purpose of the meeting, but the most urgent step is to call the company’s co-founder Do Kwon to the authorities as soon as possible.
The National Assembly plans to hold a hearing session on the Luna incident in the near future. However, the publication noted that Du Kwon is unlikely to participate as his whereabouts are unknown.
Do you think Korean crypto exchanges should have a unified listing standard? Let us know in the comments section below.
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