The Bank of Korea recommends introducing a crypto asset circuit breaker mechanism to deal with Bithumb mispayment incidents

Bank of Korea said after the mispayment incident in Bithumb that it should carefully consider introducing a "Circuit Breaker" similar to traditional financial markets in the crypto asset market to deal with extreme market fluctuations and systemic risks. The Bank of Korea pointed out that as the scale of the crypto asset market expands and related risks increase, it is difficult for existing regulatory measures to fully cover potential problems. Therefore, it is necessary to study and introduce a protection mechanism that can automatically interrupt transactions to enhance market stability and investor protection. Previously, Bithumb caused abnormal payments on some user assets due to system failures, which attracted market attention.