South Korean Crypto Exchanges to Create Body to Preempt Another Terra LUNA Type of Collapse – Five of South Korea’s most prominent domestic cryptocurrency exchanges have announced plans to form a consultative body with the goal of preventing a token collapse similar to Terra’s LUNA’s first iteration.
According to the exchanges, the consultative body would achieve this through implementing agreed-upon standards. According to a report by Yonhap News, the exchanges’ intention was revealed at a recent party-government meeting at the National Assembly.
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The five exchanges’ decision, which includes Upbit, Bithumb, Coinone, Korbit, and Gopax, comes just weeks after they were chastised for their seeming indifference to the collapse of the former terra (LUNA) cryptocurrency as well as the terrausd (UST) stablecoin.
According to the report, the five exchanges will take a variety of preparatory procedures before launching the screening guidelines, including the signing of a commercial agreement and upgrading listing-related standards.
Meanwhile, the CEOs of five exchanges and relevant working groups will make up the consultative council, according to the Korean language report. The group will also establish a warning system, set delisting standards, and provide information on cryptocurrency white papers, in addition to compliance and market monitoring.
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According to the report, the body is anticipated to create guidelines that will be utilized when listing cryptocurrencies and assessing tokens for any indicators of a Ponzi scheme. The exchanges, which have all recently announced the delisting of litecoin (LTC), have pledged to cooperate together in the event of another catastrophe such as the Terra fallout.
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