Bank of Korea Seeks to Introduce Circuit Breakers on Crypto Exchanges

The Bank of Korea has urged the implementation of mechanisms similar to those used by stock exchanges, known as circuit breakers, on cryptocurrency platforms.

Circuit breakers are designed to halt trading temporarily when prices fluctuate rapidly or reach extreme levels. This can help prevent losses and reduce the risk of erroneous payments.

The central bank cited a recent incident in which a cryptocurrency exchange experienced an error resulting in unintended payments. The absence of circuit breaker-like systems was identified as a contributing factor.