Five South Korean cryptocurrency exchanges have said they intend to set up an advisory organization to help prevent another Terra LUNA-style token crash. The organization is expected to achieve its goals by applying the standards approved by crypto exchanges.
South Korea’s top five domestic cryptocurrency exchanges have said they plan to set up an advisory body tasked with preventing a repeat of a token collapse similar to what happened in the first iteration. THE MOON OF TERRA. The advisory body will achieve this by applying agreed standards, the exchanges said.
According to Yonhap News reportthis exchange plan was made public at a party-government meeting held recently in the National Assembly.
The decision of five exchanges, namely Upbit, Bithumb, Coinone, Korbit and Gopax, came just a few weeks after they were criticized for their seeming indifference to the collapse of the former earth (MOON) cryptocurrency and stablecoin terrausd (UST).
According to the report, the five exchanges will initially take various preparatory steps prior to the launch of the verification guidelines, and some of these steps include signing a business agreement as well as improving listing-related standards.
Checking tokens for signs of a Ponzi scheme
Meanwhile, the Korean-language report also revealed that the advisory body will include the heads of the five exchanges and related working groups. In addition to compliance and market monitoring, the authority will also prepare an alert system, set delisting standards, and provide information on official crypto documents.
The authority is expected to issue guidance to be used when listing cryptocurrencies as well as when checking tokens for any signs of a Ponzi scheme, the report says. Exchanges that have all recently announced they are delisting Litecoin (LTC), promised to work together if there was another crisis similar to the aftermath of Terra.
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