To maintain compliance with relevant legislation, Korean platforms will soon be forced to offer tokens according to the same standards and to make necessary decisions jointly to avoid a repeat of the Terra debacle.
Korea’s major stock markets have agreed to develop a new emergency procedure that will activate within 24 hours if another Terra-style crash threatens to occur.
Exchanges will assemble under the new approach to react to rapid unfavourable market consequences, such as what occurred with Terra in May.
As shown in a source from local news station Daily Sports, the part of this project after five of the nation’s the highest crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, joined a conference at the National Assembly, South Korea’s senate, on June 13 to discuss market equality.
Exchange rulers, participants of the National Assembly, and Chairman Lee Bok-hyeon of the Financial Supervisory Services (FSS) debated facets of new rules of behaviour that transactions will knowingly and willingly follow to compensate investors.
In September, the new software will also launch an alert system to alert shareholders of uncommonly high-risk data assets due to unforeseen price fluctuations or other suspicious activities.
Listing regulations will be evaluated in October, and a frequent evaluation method for all mentioned tokens will be implemented.
The implosion of the Terra exosphere in May resulted in billions and billions of dollars in damages, including several legal issues for Do Kwon, the company’s founder, who was affirmed to have cheated the government out of about $40 million in taxes.
This new path, according to Ledger’s Korean market lead Jun Hyuk Ahn, will strengthen investor sentiment in a cryptocurrency exchange that has been on the unstable ground for years. “It’s too premature to assess exactly what would happen,” he said, “but it should yield good market peace.”
“More disclosure in the newly listed and blacklisted process.” This will help restore the crypto-financial markets’ trust, which was damaged by the Luna event. “
On the other hand, according to a local study from News1 on Wednesday, if the regulations are formed, transactions could be losers in the long term. According to the study, the returns required to create income from cryptocurrency entries would be hampered by the new release guidelines.
“Because cryptocurrency trading rates are quite big, local platforms often achieve the set by listing cryptocurrencies that are not registered by rivals.”
Do Kwon, the South Korean founder and CEO of Terraform Labs, has been the centre of attention in Korea’s markets. The notorious Financial and Securities Crime Investigative Committee, often known as the Grim Reapers of Yeoui-do, has been investigating Kwon for suspected wrongdoing and tax avoidance.
Kwon has disputed accusations of financial fraud and tax cheating, including one which claims he has taken over $2.7 billion from the Terra environment in the last three years. The SEC, on the other hand, is still seeking Kwon’s appearance in the US Court of Appeals on accusations of trading unlicensed stocks through the Mirror Protocol.
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