"Virtual Asset Market May Introduce 'Sidecar' Like Stocks"

Son Min

Summary

The Financial Services Commission stated that it is discussing the introduction of a sidecar in the virtual asset market with the aim of stabilizing market prices.
The 4th Virtual Asset Committee meeting announced that it is considering including a measure to suspend trading when a 'listing beam' occurs in the DAXA and Best Practices for Trading Support.
It was also announced that guidelines allowing non-profit organizations to sell virtual assets will be addressed in this meeting.

The Financial Services Commission is expected to discuss the introduction of a 'sidecar' in the virtual asset (cryptocurrency) market during the 4th Virtual Asset Committee meeting on May 1. A sidecar is a measure for market price stabilization, where if the futures price exceeds 5% based on the previous day's closing price and this state continues for more than a minute, program trading is suspended for 5 minutes.

According to the industry on the 29th (local time), the Financial Services Commission plans to discuss adding a concept similar to a 'sidecar' to the 'Best Practices for Trading Support' of the Digital Asset Exchange Joint Consultative Body (DAXA) during the 4th Virtual Asset Committee meeting. The plan is to include regulations to suspend trading for a certain period when abnormal trading such as 'listing beam' occurs in the best practices to prevent market confusion. Although there are similar provisions in the 'Virtual Asset Market Business Regulations', it is interpreted as a response to criticism of low effectiveness.

In addition, the meeting is expected to address guidelines allowing non-profit organizations such as designated donation organizations or universities to sell virtual assets.