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In the event of a Terra-style collapse, Korean exchanges have agreed on an emergency system

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.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.