Korean Government Considers Imposing Unified Listing Standard on Crypto Exchanges After LUNA, UST Collapse – According to the Korea Times, the South Korean government is shifting responsibility for the cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST) crashes onto crypto exchanges.
The Korean National Assembly and government conducted an emergency meeting Tuesday with the heads of the country’s largest crypto exchanges to explore measures to prevent a recurrence of the LUNA and UST collapses. According to the publication, lawmakers as well as financial regulators appear to favor the implementation of stricter crypto exchange rules.
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The Korean government has criticized cryptocurrency exchanges for their slow response to the two cryptocurrencies’ collapse. It took two weeks for LUNA to be delisted from multiple major Korean crypto exchanges. Some critics allege they delayed delisting on purpose in an attempt to benefit from the situation.
Rep. Yoon Chang-hyun of the ruling People Power Party expressed concern about the ambiguous listing and delisting standards used by cryptocurrency exchanges. He emphasized:
“The exchanges don’t have a consistent listing standard, and they don’t hold any negotiations about it.”
Lee Sirgoo, the CEO of Dunamu, that runs Upbit, the country’s leading cryptocurrency exchange, indicated that adopting an unified listing criteria across domestic cryptocurrency exchanges will not fix the problem. “Crypto assets can be sent to exchanges based outside of Korea, and many crypto investors are already doing so,” he said.
During the meeting, People Power Party Rep. Sung Il-jong reportedly declared, “We need to make exchanges play their proper function.” “As a result, it’s critical for watchdogs to closely monitor them.”
He continued:
“When exchanges violate the rules, they should face legal consequences to ensure that the market operates smoothly.”
“We will create tight contacts with the Ministry of Justice, the prosecutor’s office, as well as the police so as to monitor any criminal conduct in the business and secure investors’ rights,” said Financial Services Commission Vice-Chairman Kim So-young.
“At this time, when no clear regulatory control has been imposed, exchanges can easily become a target of criticism,” a representative from one of the domestic cryptocurrency exchanges stated.
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He continued:
“We understand the purpose of the meeting, but the most crucial step is for authorities to promptly summon Do Kwon, the company’s co-founder.”
Korean Government Considers Imposing Unified Listing Standard on Crypto Exchanges After LUNA, UST Collapse – The National Assembly plans to convene a hearing on the LUNA event in the near future. According to the publication, Do Kwon is unlikely to attend because his whereabouts are unclear.
