South Korea pushes crypto exchanges to form token-listing guidelines

In the aftermath of the TerraUSD stablecoin crash, South Korea’s ruling party is urging the country’s crypto exchanges to develop industry guidelines for listing and delisting digital tokens to protect the public, reported Bloomberg.

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TerraUSD‘s collapse erased an estimated US$40 billion in market value globally for holders of the stablecoin and its sister token Luna. Stablecoins have a combined market value of about US$160 billion, according to CoinGecko data.

Lawmakers from the ruling party’s virtual assets committee will also be meeting Upbit, Bithumb, Coinone, Korbit, and Gopax to agree on a draft of non-binding guidelines. These five exchanges account for 99% of crypto trading in South Korea.

With this move, South Korea joins other governments  across the world that have pushed for crypto oversight.  “The TerraUSD failure underscores the need for better investor protections in crypto,” said lawmaker Yun Chang-hyun.

He added: “There are a lot of shortcomings compared with traditional finance. [Crypto] was neglected for too long without order and discipline.”

According to Bloomberg’s sources, the draft guidelines are likely to include stricter reporting requirements for transparency.

See also: Move over UST, USDC’s the new face of crypto payments