Five South Korean cryptocurrency exchanges said they intend to create an advisory organization that will help prevent a repeat of the Terra LUNA-style token crash. The organization is expected to achieve its goals by applying standards supported by crypto exchanges.
Five of South Korea’s major domestic cryptocurrency exchanges have said they plan to create an advisory body whose mandate is to prevent the recurrence of a token crash similar to Terra’s first iteration of LUNA. The advisory body will achieve this by applying agreed standards, the exchanges said.
According to a report by Yonhap News, this plan of the exchanges was revealed at the party-government meeting held in the National Assembly recently.
The decision 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 old cryptocurrency terra (LUNA) and stablecoin terrausd. (UST). .
According to the report, the five exchanges will initially take different preparatory steps before the selection guidelines are released, and some of these steps include signing a trading agreement and improving standards related to listing.
Token Review for Signs of a Ponzi Scheme
Meanwhile, the Korean-language report also revealed that the advisory body will be made up of the CEOs of five exchanges and related working groups. In addition to market enforcement and oversight, the body will also prepare a warning system, establish delisting standards, and provide information on cryptocurrency white papers.
The body is expected to issue guidelines to be used when listing cryptocurrencies, as well as reviewing tokens for signs of a Ponzi scheme, according to the report. The exchanges, which recently announced the delisting of litecoin (LTC), have pledged to work together should another Terra-like crisis occur.
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