Korean stock exchanges agree on emergency system in case of Terra-style collapse

Korean stock exchanges agree on emergency system in case of Terra-style collapse – Mail Bonus

Korea’s leading stock exchanges have agreed to form a new emergency system that will take effect within 24 hours if another Terra-style collapse threatens.

Under the new system, stock exchanges will come together to respond to sudden adverse effects on the market, such as what happened to Terra in May.

The deal came after five of the country’s largest cryptocurrency exchanges, Upbit, Bithumb, Coinone, Korbit and Gopax, attended a session of the South Korean Legislative Assembly to discuss market fairness on June 13, according to a local Daily Sports report.

Exchange leaders, MPs and the Chairman of the Board of the Financial Supervisory Authority (FSS), Lee Bok-hyeon, discussed aspects of a new code of conduct that exchanges will voluntarily follow to protect investors.

The new code will also see the implementation of an alert system in September to signal to investors unusually risky virtual assets due to abnormal price changes or other unusual activities.

In October, registration guidelines will be reviewed and a regular assessment system will be established for all registered symbols.

In May, the collapse of the Terra ecosystem led to tens of billions of dollars in losses and a number of legal problems for the founder, Do Kwon, who was confirmed to have evaded $ 40 million in taxes through Terraform Labs.

The code aims to systematize symbol listings and delistings in order to maximize compliance with rules and eliminate the difference in listing instructions between each stock exchange.

Korean market leader Ledger Jun Hyuk Ahn told the Cointelegraph on Thursday that the new policy would boost investor confidence in cryptocurrencies that have been on the shaky ground for years. He said: “It is too early to predict exactly what will happen, but there should be more harmony in the market.

“Greater transparency in the registration and deregistration process will help restore confidence from the crypto-losers lost in the Luna incident.”

Domestic stock exchanges have taken the biggest blame for allowing investors to trade with LUNA when it collapsed. The number of Korean LUNA owners increased by 180% between May 6 and May 18 from 100,000 to about 280,000. At that time, Terra USD stablecoin had stuck and LUNA fell from over $ 60 to under $ 0.01. The new guidelines would aim to prevent exchanges from allowing investors to trade such highly volatile tokens by closing trades within 24 hours or delisting them altogether.

On the other hand, a local news item from News1 on Wednesday stated that exchanges could lose in the long run if the guidelines are set. The report believed that strict new listing guidelines would hamper the ability of exchanges to monetize altcoin listings.

“Domestic exchanges often guarantee profits by listing altcoins that are not listed by competitors because trading in altcoins is quite large.”

Korea’s stock exchanges have been sharing the spotlight with South Korean founder and CEO of Terraform Labs, Do Kwon. Kwon has been under investigation by the dreaded financial and securities crime investigation team, also known as Grim Reapers of Yeoui-do, for alleged misconduct and tax evasion.

Connected: The Court of Appeal of Do Kwon, Terraform Labs, must abide by SEC policy published in September

On June 15, Grim Reapers unveiled documents from the Seoul tax office claiming that Kwon and Terralabs had embezzled $ 40 million in corporate and income taxes in 2021, according to The JoongAng News Agency.

Kwon has denied allegations of money laundering and tax evasion, including one alleging that he paid more than $ 2.7 billion over the past three years from the Terra ecosystem. However, the SEC still wants to sue Kwon in the US Court of Appeals over a charge of selling unlisted securities through the Mirror Protocol.