To maintain compliance with local legislation, Korean exchanges will soon be forced to offer tokens based on the same guidelines. The new code will also see the launch of a warning system to alert investors of especially high-risk virtual assets.
According to a source from local news outlet Daily Sports, the agreement came after five of the country’s top crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax meeting. They attended a session at the National Assembly, South Korea’s legislature, on June 13 to discuss market fairness. Korea’s major stock exchanges have agreed to develop a new emergency system.
It will activate within 24 hours if another Terra-style crash threatens to occur. Exchanges will congregate under the new approach to respond to rapid adverse market consequences. Exchange officials, members of the National Assembly, and Chairman Lee Bok-hyeon of the Financial Supervisory Services (FSS) addressed components of a new code of conduct. Exchanges will voluntarily follow to protect investors.
The Terra ecosystem’s collapse in May resulted in tens of billions of dollars in losses and a slew of legal issues. For allowing investors to trade LUNA while it fell, domestic exchanges have absorbed the brunt of the criticism. Between May 6 and May 18, the number of Korean LUNA holders increased by 180 percent, from 100,000 to almost 280,000. The Terra USD stablecoin had de-pegged over that time, and LUNA had fallen from nearly $60 to around $0.01.
