Five South Korean cryptocurrency exchanges said they intend to create a consultative organization which will help prevent a repeat of a Terra LUNA-style token collapse. The organization is expected to achieve its objectives by applying standards that are endorsed by the crypto exchanges.
Screening guidelines
Five of South Korea’s major national cryptocurrency exchanges have announced plans to create an advisory body whose mandate is to prevent a repeat of a token collapse similar to Terra’s first iteration of LUNA. The advisory body will achieve this by enforcing the agreed standards, the exchanges said.
According to a Yonhap News report, this plan by the exchanges was revealed at the party-government meeting held at the National Assembly recently.
The move by the five exchanges, namely Upbit, Bithumb, Coinone, Korbit and Gopax, comes just weeks after they were criticized for their apparent indifference to the collapse of the former cryptocurrency terra (LUNA) and stablecoin terrausd. (UST). .
As per the report, the five exchanges will initially take different preparatory steps prior to the launch of the screening guidelines, and some of these steps include the signing of a business agreement as well as improving listing-related standards.
Token Review for Signs of a Ponzi Scheme
Meanwhile, the Korean-language report also revealed that the advisory body will include the CEOs of five stock exchanges and related working groups. In addition to compliance and market surveillance, the body will also prepare an alert system, set standards for delisting, and provide information on cryptocurrency white papers.
The body is expected to issue guidelines that will be used when listing cryptocurrencies as well as when reviewing tokens for any signs of a Ponzi scheme, the report said. The exchanges, which all recently announced the delisting of litecoin (LTC), have pledged to work together should another crisis that is similar to the Terra fallout occur.
