Bank of Korea calls for stock-style circuit breakers on BTC exchanges
The Bank of Korea proposes implementing mandatory circuit breakers on domestic crypto exchanges to curb extreme price volatility and prevent trading errors.Summary
The Bank of Korea has recommended introducing stock-market-style circuit breakers for cryptocurrency exchanges in its annual Payment and Settlement Systems Report. This proposal, intended to be part of the Digital Asset Basic Act, aims to automatically halt trading during sharp price swings or abnormal order activity. The move follows a February incident at Bithumb where a fat-finger error led to the distribution of approximately 60 trillion won in phantom bitcoin, causing a localized 17% price crash. While the central bank views this as a necessary control mechanism, critics note that crypto's global, 24/7 nature makes isolated halts difficult, as prices would likely sync with external international exchanges once trading resumes.
(Source：CoinDesk)