Bank of Korea calls for stock-style circuit breakers on BTC exchanges
Analysis
Price Impact
MedThe proposal by the bank of korea to implement stock-market-style circuit breakers on crypto exchanges could introduce temporary volatility. while the intention is to stabilize the market during extreme price swings or order anomalies, the implementation itself could lead to short-term price dislocations as trading halts and then resumes.
Trustworthiness
HighPrice Direction
NeutralThe immediate price impact of the news is likely to be neutral. while circuit breakers aim to prevent drastic drops, they don't necessarily provide a sustained bullish or bearish catalyst. the effectiveness of these breakers in a 24/7 global market is also a significant question mark, limiting their long-term price influence.
Time Effect
ShortThe news concerns regulatory changes and market mechanisms. while the implementation of such rules would have an effect, the announcement itself and the subsequent debate about their feasibility are likely to have a short-term impact on market sentiment and price action, rather than a prolonged one.
Original Article:
Article Content:
Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bank of Korea calls for stock-style circuit breakers on BTC exchanges Crypto's 24/7 global trading across hundreds of venues makes it difficult for any single country to halt the market. By Sam Reynolds | Edited by Jamie Crawley Apr 13, 2026, 10:31 a.m. Make preferred on What to know : The Bank of Korea has proposed introducing stock-market-style circuit breakers on domestic cryptocurrency exchanges, folding the rules into the pending Digital Asset Basic Act. The recommendation follows a February incident at Bithumb in which a promotion error briefly created about 60 trillion won in phantom bitcoin and triggered a 17 percent price plunge on the exchange. Regulators and market participants are debating whether circuit breakers, long used in traditional finance, can effectively stabilize a globally traded asset like bitcoin that continues trading on other venues during local halts. The Bank of Korea is pushing to install stock-market-style circuit breakers on the country's cryptocurrency exchanges, a proposal that would bring crypto under the same trade-halting rules used by the Korea Exchange. The recommendation appears in the central bank's annual Payment and Settlement Systems Report , published April 13, and calls for automatic halts when crypto prices swing sharply or abnormal orders hit the book. The central bank said the rules should be folded into the pending Digital Asset Basic Act. The catalyst for the policy suggestion comes from an incident at Bithumb in February when an employee running a promotion entered the reward unit as "BTC" instead of "KRW," distributing roughly 60 trillion won ($43 billion) in phantom bitcoin before supervisors caught the error 20 minutes later. Panic selling crashed BTC on Bithumb by a 17% drop while the token continued to trade at market prices on other venues. Upbit, Bithumb and Korea's three other licensed exchanges already run high-speed matching engines with price collars and fat-finger checks built in. CME Group runs a similar system on bitcoin futures, halting trading for two minutes when prices move 10% inside a 60-minute window. The harder question is whether halts would work, given the global nature of BTC trading. If Upbit paused for 20 minutes, bitcoin would keep trading on Binance, Coinbase and dozens of others — and Upbit's price would snap to wherever global markets moved when it reopened. Circuit breakers are a familiar tool from traditional finance, a visible signal that markets are being brought under control. But crypto does not have a single venue to stop, and the problems regulators are trying to solve do not neatly map to price volatility. South Korea More For You Crypto markets stall as oil surges past $100 on Strait of Hormuz blockade By Oliver Knight , Omkar Godbole | Edited by Sheldon Reback 1 hour ago Bitcoin and ether retreated Monday as tensions in the Middle East triggered a spike in crude oil, forcing traders into defensive derivatives positioning. What to know : Bitcoin remains trapped in a monthslong trading range after failing to clear resistance at $74,000. Short interest is rising for some major altcoins, like cardano, and broader market sentiment shows a preference for downside protection through put options. Speculative memecoins and select DeFi tokens outperformed the wider market as investors... Read full story Latest Crypto News AI agents are set to power crypto payments, but a hidden flaw could expose wallets 19 minutes ago Bitcoin anchors near $70,000 as RAVE's 3,400% surge signals speculative froth 31 minutes ago Crypto markets stall as oil surges past $100 on Strait of Hormuz blockade 1 hour ago The one metric investors are overlooking in Michael Saylor’s Strategy 1 hour ago StarkWare cuts jobs in reorganization as Starknet revenue plunges 99% from peak 2 hours ago Clarity Act returns to U.S. Senate, bank earnings: Crypto Week Ahead 3 hours ago Top Stories WLFI threatens legal action against Justin Sun after he accuses Trump-linked project of deceptive DeFi deals 5 hours ago Alameda moves $16 million in Solana's SOL token for possible creditor distribution 4 hours ago Attacker mints $1 billion Polkadot tokens on Ethereum, ends up stealing just $250,000 4 hours ago Bitcoin hits a wall – the chart just challenged the $88,000 bull case 6 hours ago Super PAC tied to Tether makes first ad buy from firm founded by Tether's U.S. CEO 22 hours ago Strategy signals another bitcoin buy as company needs just 2% annual BTC growth to cover dividends 6 hours ago