According to a South Korean news outlet, the top five cryptocurrency exchanges in South Korea have decided to form an advisory body that will prevent a situation like the collapse of Terra from happening again. There.
Participating exchanges: UpBit, Coinone, Bithumb, Gopax and Korbit. They plan to develop a strict verification process for the listing of cryptocurrencies, which will be ready by the second half of this year.
This decision is the result of a disagreement in how crypto exchanges handled the collapse of Terra. While some quickly delisted the token, some did not, resulting in further losses for customers who continued to buy. Now the exchanges will try to avoid such situations in the future.
The plan is the result of a meeting between the exchanges and the government. As part of this process, the exchanges have signed a business agreement and will now work to develop better listing-related standards to be used in any emergency.
Korean exchanges plan to improve rules
According to reports, the proposal includes the creation of three different committees from the advisory body, which will deal with compliance monitoring, market monitoring and transaction support.
It plans to publicly announce the first part of the plan, the virtual currency warning system, and delisting standards in September. There will also be information about digital assets such as valuation reports and white papers.
In addition, there will be a crisis plan to deal with any situation similar to the Moon crisis. The Authority will discuss the plan and provide recommendations within 24 hours.
There are several other functions that the body will have to perform. This includes the publication of cryptocurrency verification guidelines and the introduction of a new risk assessment period.
The reports state that the group will evaluate projects not only in terms of their technical effectiveness. He will now review the feasibility of the project and evaluate factors such as the likelihood that it is a Ponzi scam.
In addition, he will review the potential of the project for other crimes related to cryptocurrencies such as money laundering. The authority will seek the help of outside experts to review new cryptocurrencies.
Through the body’s comprehensive functions, including investor education, it is clear that the stakeholders in South Korea are doing everything to prevent a repeat of the situation with the moon. In addition, government agencies are already making efforts to protect crypto investors.
Credit : cryptoslate.com