After the failure of cryptocurrency terra (LUNA), and stablecoin terrausd(UST), the South Korean government has begun to consider imposing stricter regulations.
Korean Government’s Meeting With Cryptocurrency Exchanges
South Korea’s government will shift responsibility for cryptocurrency terra’s (LUNA) and algorithmic stabilitycoin terrausds (UST) crash onto crypto exchanges. The Korea Times reported this Thursday.
On Tuesday, the Korean National Assembly met with government officials and heads of crypto exchanges to discuss ways to avoid a repeat of the LUNA/UST implosion. According to the publication, however, lawmakers and financial experts supported tighter regulation of crypto exchanges.
Crypto exchanges have been criticized by the Korean government for not responding quickly to the crash of the two cryptocurrency. Several Korean top crypto exchanges failed to delist LUNA before two weeks. Some people claimed that they deliberately delayed the delisting in order to collect more commissions.
Rep. Yoon Chang-hyun of the ruling People Power Party raised concerns over crypto exchanges’ ambiguous listing and delisting standards. He stressed:
There is no unified listing standards for exchanges and there are not any discussions over this issue.
Responding to the lawmakers’ discussion about imposing a unified listing standard across domestic cryptocurrency exchanges, Lee Sirgoo, the CEO of Dunamu, which operates Upbit, the country’s top exchange, explained that it will not solve the problem. “Crypto assets can be sent to overseas exchanges, and many crypto investors are already using non-Korean headquartered exchanges,” he said.
Rep. Sung Il-jong of the People Power Party reportedly said during the meeting: “We need to make exchanges play their proper role, and toward that end, it is crucial for watchdogs to supervise them thoroughly.” He added:
To ensure the smooth functioning of the market, exchanges should be legally held responsible for violating rules.
Vice-Chairman Kim So-young of the Financial Services Commission (FSC), the country’s top financial regulator, said: “We are going to build close ties with the Ministry of Justice, the prosecution and police, in a bid to monitor any illegal acts in the industry and protect investors’ rights.”
An official from one of the domestic cryptocurrency exchanges opined: “Exchanges can easily become a target of criticism at this period of time when no specific regulatory guideline has been introduced.” He added:
Although we are able to understand the goal of the meeting and the urgency of Do Kwon’s summons, it is urgent that authorities call Do Kwon immediately.
A hearing session will be held by the National Assembly on the LUNA issue in the near future. The publication said that Do Kwon will not be attending, as his location is unknown.
Is it your opinion that Korean crypto-exchanges need a standard for unified listing? Please leave your comments below.
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