In the wake of the crash of Luna and Terra, Korea’s top five crypto exchanges – Upbit, Bithumb, Coineone, Korbit, and Gopax – have decided to form a joint consultative body to apply the same set of standards for transaction support, or coin listing. “The government is carrying out on-site inspections on financial companies to prevent the risk caused by the crash spilling over into the financial system”
At the National Assembly on Monday, the government and the ruling People Power Party held a meeting, “The emergency inspection on plans for restoring fairness and protecting investors in the crypto market”, to discuss ways to protect investors. The head of the FSS said that “we will closely evaluate the impact of the increased cryptocurrency trade has on the stability of our financial system and financial consumer protection and make great efforts to minimize loopholes in investor protection until the public regulation system is in place.” For the question whether the FSS will consider Luna Security Token Offering, Lee, who visited the National Assembly for the first time since his appointment, said “he will look into that.”
The government first highlighted the importance of voluntary self-regulating of the crypto industry. Lee said that “establishing a reasonable regulation system is important, but setting a voluntary regulatory system through the active participation of private experts needs to be emphasized more.” Kim So-young, Vice Chairman of the Financial Services Commission said that “it is time to come up with a fair and transparent voluntary regulatory system for them to gain trust from the crypto market”
Accordingly, the leading five crypto exchanges have decided to establish a set of standards on issuing warnings for crypto investors and delisting. This is to avoid the same confusion that took place during the crash of Luna due to decentralized delisting time shown in each exchange.
The ruling party is up for relevant legislation. “We will establish a Framework Act on blockchain to support in the fourth industrial revolution era,” said Sung Il-jong, the head of the PPP’s policy committee.