Korean Government Considering Tougher Regulations for Crypto Exchanges
The collapse of stablecointerrausd (UST) and crypto terra (LUNA) has shaken the entire cryptocurrency market. It has also driven regulatory authorities to reconsider some of the rules that they have introduced for governing the space. The South Korean government also appears to be contemplating the same, as reports indicate that they are thinking about tightening regulations where crypto exchanges are concerned. This includes introducing a unified listing standard. Reports on Thursday indicated that an emergency meeting had been held by the government and the Korean National Assembly with the heads of the prominent crypto exchanges in the country.
The meeting on Tuesday was scheduled for discussing measures that could help them in preventing an implosion similar to what had happened in the case of UST and LUNA. It appears that the financial authorities and lawmakers were in perfect accord when it came to imposing stricter regulations on the country’s crypto exchanges. It seems that the government believes the crypto exchanges were also responsible for the aftermath of the crash of the two cryptocurrencies and they were criticized for their delayed response. Some of the top crypto exchanges in South Korea took at least two weeks for delisting LUNA.
According to some critics, these crypto exchanges had decided to deliberately delay the delisting because they wanted to earn more commission from the crash. Belonging to the People Power Party, Rep. Yoon Chang-hyunsaid that the listing and delisting standards of crypto exchanges are quite ambiguous, which makes them a big concern. He stated that the exchanges are lacking a unified listing standard and they do not have any negotiations regarding this matter. The top exchange in South Korea is called Upbit, which is operated by a company named Dunamu. The firm’s CEO, Lee Sirgooresponded to the discussion of the lawmakers about coming up with a unified listing standard.
He stated that doing so would not help in resolving the issue because it is possible to send crypto assets to exchanges overseas and a number of investors are already using exchanges that are not based in Korea. As per Rep. Sung II-jongalso attended the meeting. He said that exchanges have to play their role and watchdogs also need to supervise them properly. He went on to say that if crypto exchanges were found to be violating any rules, then they need to be held accountable to keep the market operating smoothly.
The top financial regulator in South Korea is the Financial Services Commission (FSC) and its vice chairman, Kim So-young said that they were going to work closely with the police, prosecution and the Ministry of Justice in order to ensure that the industry remains free of any illegal activities and investors’ rights are fully protected. A representative of one of the local crypto exchanges stated that it was easy to shift the blame onto exchanges when no specific regulatory guideline exists. He said that it was better to summon Do Kwon, Terraform Labs’ co-founder, to know what happened.
