South Korea Eyes Listing Rules For Crypto Exchanges After Luna Scandal

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South Korean lawmakers are calling on the nation’s crypto exchanges to formulate tips for itemizing and delisting cryptocurrencies, Bloomberg Information reported.

The legislators are basing the urgency of building the brand new itemizing guidelines on the collapse of TerraUSD (UST) and its sister token, Terra LUNA (LUNA). By getting native exchanges to create clear tips, the policymakers hope to guard buyers towards the dangers related to the nascent asset class.

Yun Chang-Hyun, head of the ruling celebration’s Digital Asset Committee, is championing the movement. In an interview, Chang-Hyun disclosed that he known as for a second assembly with main South Korean crypto exchanges, together with Upbit, Bithumb, Coinone, Korbit, and Gopax. The assembly is scheduled for the week of June 13.

Per Chang-Hyun, the assembly’s objective is to get the exchanges to log out on a draft of the non-binding tips. As soon as crypto exchanges attain a consensus, South Korea will implement a self-regulatory system like Japan.

Emphasizing the necessity for the itemizing and delisting tips, Chang-Hyun mentioned crypto has a number of shortcomings in comparison with conventional finance. He added that the crypto house has been working for a very long time with out order and self-discipline.

Growing efforts to guard crypto buyers

Beforehand, Chang-Hyun prompt that the South Korean parliament summon Terra’s CEO, Do Kwon, to reply questions in regards to the collapse of UST and LUNA.

He mentioned:

We should always convey associated change officers, together with CEO Do Kwon of Terra, which has turn out to be a current downside, to the Nationwide Meeting to carry a listening to on the reason for the scenario and measures to guard buyers.

Quickly afterward, South Korean authorities probed Terraform Labs workers. The investigation sought to uncover whether or not inside gamers deliberately manipulated UST and LUNA costs. Furthermore, authorities regarded into whether or not the tokens adopted the proper itemizing procedures on native exchanges.

Whereas South Korea remains to be looking for the most effective strategy to guard buyers with out stifling the expansion of the crypto ecosystem, Japan has taken a stricter stance.

Japan’s lawmakers handed a stablecoin regulation invoice following the Terra fiasco to guard buyers. The invoice defines stablecoins as digital cash. Moreover, the laws requires stablecoin issuers to hyperlink their tokens to the yen or one other authorized tender.

The U.Okay. additionally proposed legislative amendments to manage crypto firms, together with stablecoin issuers. Particularly, the federal government desires to convey crypto corporations beneath the Monetary Market Infrastructure Particular Administration Regime (FMI SAR).

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