After the collapse of stablecoin terra usd and cryptocurrency terra (LUNA), the South Korean government may impose tougher regulations on cryptocurrency exchanges, including a unified list standard.
Meetup of the Korean Government with Cryptocurrency Exchanges
According to the Korea Times, Thursday’s report by the Korea Times stated that the South Korean government has transferred responsibility for the cryptocurrency terra (LUNA), and algorithmic stablecoin terrausd(UST) crashes onto crypto exchanges.
Tuesday’s emergency meeting was held by the Korean National Assembly and government with heads of crypto exchanges in the country to discuss ways to prevent the recurrence and implosion of the LUNA/UST. The publication revealed that lawmakers and financial officials supported the imposition tougher regulations for crypto exchanges.
The Korean government has criticised crypto exchanges for not responding quickly to the collapse of the two currencies. LUNA was not delisted by several top Korean crypto exchanges until two weeks after the collapse. Some critics claimed that they deliberately delayed delisting LUNA to collect more commissions.
Rep. Yoon Changhyun, a representative of the ruling People Power Party, raised concerns about crypto exchanges’ ambiguous listing standards and delisting standards. He stressed:
The exchanges don’t have a unified listing standard and they do not hold negotiations on the issue.
Lee Sirgoo (CEO of Dunamu), who operates Upbit, the country’s most popular exchange, responded to lawmakers’ discussions about imposing a uniform listing standard for all domestic cryptocurrency exchanges. He stated that crypto assets can be sent overseas and that many crypto investors already use non-Korean exchanges.
Rep. Rep.
Exchanges that violate the rules of the market should be held accountable to ensure that it functions smoothly and without problems.
Kim So-young, Vice-Chairman of the Financial Services Commission, the country’s top regulator of financial services, stated: “We are going build close ties to the Ministry of Justice and the prosecution and police in a bid monitor any illegal acts within the industry and protect investor’s rights.”
A representative from one of the local cryptocurrency exchanges stated that “Exchanges could easily become a target for criticism at this time of time when there is no specific regulatory guideline.”
While we understand the purpose of this meeting, the first step is to summon Do Kwon (co-founder of the company) as soon as possible.
In the near future, the National Assembly will hold a hearing on the LUNA case. The publication said that Do Kwon will not be attending, as his whereabouts remain unknown.
