South Korea’s ruling political party – the People’s Power Party – has said that the country’s major crypto exchanges have created plans that could see them form a self-regulatory body that could be empowered to make cross-platform decisions on issues. such as disbarment and suspension. of operations.
According to Asia Kyungjae and SBS, a party spokesperson told media that the crypto “industry” had “recently” presented “a self-regulatory plan to him in a private meeting.”
The media claimed that the plan included measures that would see a joint body empowered to make quick decisions on coin listing policies and suspension of trading. The body would be responsible for “securing investor confidence” by “creating regulatory measures” that will allow exchanges “to respond jointly in the event of an emergency”.
The proposals will likely be discussed at a second high-level private sector executive summit to be held on Monday next week. The summit was called to “protect cryptocurrency investors” in the wake of the galvanizing Terra/UST crash. Exchanges have faced a barrage of criticism for not coordinating their delisting of the collapsed LUNAC token, leading to fevered speculation and “kimchi bounty” trading.
They have apparently attempted to show that they are capable of acting as one in the period since, however: the five fiat trading exchanges announced simultaneously this week that they would remove Litecoin (LTC) from the list after the latter’s node operators have agreed to add confidentiality. protocols.
Also attending the summit, alongside senior party officials, will be a number of government officials, including ministers. Regulators of Financial Services Commission and the Financial monitoring service will also be present.
MK Yoon Chang-hyeon, who chairs the People Power Party’s special committee on virtual assets, hinted that the exchanges were in response to pressure from the government. Yoon said the party had “requested exchanges” to draft a “self-contained protocol or system of common countermeasures.”
“It looks like it will take a long time to improve [the cryptoasset] market. We will need to complete and refine the voluntary guidelines a bit more.
He suggested that this (second) meeting between the stock exchanges and the executive be followed by a “third and fourth round” of meetings.
Yoon was further quoted as stating that although crypto trading platforms are called “exchanges”, “unlike the stock exchange, they play by separate rules”.
However, Asia Kyungjae indicated that not everyone is happy with the decision to self-regulate – which would mean following a regulatory path similar to that of Japan. Across the sea to the East, Japanese trading platforms defer to a central crypto exchange body that regulates issues relating to listing and transaction monitoring, among other things. .
The outlet wrote that “dissatisfaction is also being detected in the crypto-asset industry,” with some unhappy with the new “regulatory measure.”
An anonymous national crypto exchange official (also anonymous) said:
“The ruling party wants to create common selection criteria for token lists. But is it right for the ruling party and the government to regulate the private sector? »
dunamumarket leader operator Up bit Exchange, previously said it would “discuss a system of cooperation” with its “major exchange” rivals, so the industry could prepare for “a similar joint emergency response” to the Terra crash. /LUNA.
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South Korean Crypto Exchanges Are Ready To Self-Regulate, Ruling Party Says
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