The Bank of Korea has recommended the introduction of circuit breaker mechanisms in the cryptocurrency sector following a February incident where Bithumb mistakenly issued 620,000 Bitcoin. The central bank highlighted the need for such measures to address abnormal trading and significant price volatility.
The incident was attributed to internal control failures, including inadequate approval and monitoring processes, as well as insufficient reconciliation between ledger and on-chain balances. To enhance transaction security and risk management, the bank proposed implementing dual verification, real-time automatic reconciliation, and error prevention systems.
Bank of Korea Recommends Circuit Breakers for Crypto Exchanges
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