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Korea’s central bank is calling for stock-market-style circuit breakers on the country’s cryptocurrency exchanges in order to protect investors from severe volatility.
The proposal from the Bank of Korea would bring crypto under the same “halt trading” rules as stocks that are listed on the Korea Exchange.
The recommendation calls for automatic halts when cryptocurrency prices swing sharply or abnormal orders hit the exchange.
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The central bank said the halt trading rule is especially important for cryptocurrencies such as Bitcoin (CRYPTO: $BTC) that trade around the clock: 24 hours a day, seven days a week.
While some analysts and investors applaud the recommendation, others question whether it would be effective given the global nature and speed of Bitcoin trading.
Critics point out that halting trading of BTC in Korea wouldn’t stop it from continuing to trade in other countries, and the price would be wherever global markets moved when Korea reopened.
Circuit breakers are a familiar tool on stock markets around the world and signal that markets are being brought under control amid volatile trading.
The proposal from Korea’s central bank would need to be approved and adopted by the country’s main trading exchange.
Bitcoin’s price is currently near $72,000 U.S.