South Korean Crypto Exchanges to Form Body to Avoid Another Terra LUNA-Style Collapse, According to a Report
A consultation group led by five South Korean cryptocurrency exchanges will assist prevent another Terra LUNA-style coin crash, they announced. The group is anticipated to accomplish its goals by following guidelines that the cryptocurrency exchanges have approved. In order to prevent another token collapse like the one that occurred with Terra’s LUNA in its initial version, five of South Korea’s top local cryptocurrency exchanges have announced their intention to establish a consultative body. The exchanges stated that the consultative council will do this by putting established norms into practise.
The five exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, made their decision only a few weeks after coming under fire for what appeared to be their lack of concern for the demise of the old terra (LUNA) cryptocurrency and the terrausd (UST) stablecoin. According to the article, the five exchanges would first conduct a variety of preliminary actions before the release of the screening rules, some of which include the conclusion of a commercial contract and raising listing-related requirements.
The CEOs of five exchanges and associated working groups will make up the advisory committee, according to the Korean-language newspaper. The organisation will also create a warning system, establish delisting criteria, and disseminate details on cryptocurrency white papers in addition to compliance and market monitoring. The organisation is anticipated to provide criteria that will be applied when listing cryptocurrencies and when inspecting tokens for any indications of a Ponzi scheme, according to the article. The exchanges have vowed to cooperate should a situation arise that is comparable to the Terra catastrophe. They recently all declared the delisting of litecoin (LTC).