Five Korean cryptocurrency exchanges said they intend to establish a consultative organization to help prevent the recurrence of Terra LUNA-style token collapses. The organization is expected to achieve its objectives by applying standards approved by the crypto exchanges.
Vetting Guidelines
Five of Korea’s leading domestic cryptocurrency exchanges said they plan to establish a consultative body tasked with preventing the recurrence of token collapses similar to the first iteration ofTerra’s LUNA. The consultative body will accomplish this by applying agreed-upon standards, the Exchange said.
The plan by the exchange was revealed at a meeting of the party government, according to a Yonhap Newsreport. The plan by the exchanges was revealed at a recent party-government meeting at the National Assembly, according to a Yonhap News report (23).
The decision by the five exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, comes just weeks after they were criticized for their seeming indifference to the collapse of the former Terra (LUNA) cryptocurrency and Terrausd (UST) stablecoin.
According to the report, the five exchanges will initially take various preparatory steps prior to the launch of the review guidelines, including the signing of a business agreement as well as improvements to listing-related standards.
Reviewing tokens for signs of Ponzi schemes
Meanwhile, the Korean-language report also revealed that the advisory body will consist of the CEOs of the five exchanges and related working groups. In addition to compliance and market monitoring, the body will also prepare warning systems, set delisting criteria, and provide information on cryptocurrency white papers.
The agency will issue guidelines that will be used not only when listing cryptocurrencies, but also when vetting tokens for signs of Ponzi schemes, the report said. Recently, all exchanges announced the delisting of Litecoin (LTC), but pledged to cooperate in the event of another crisis similar to the terra fallout.
Image credits: Shutterstock, Pixabay, Wiki Commons