Report: South Korean Crypto Exchanges to Create Body to Preempt Another Terra LUNA Type of Collapse

June 14, 2022

Five South Korean cryptocurrency exchanges mentioned they intend to create a consultative group which is able to assist forestall a repeat of a Terra LUNA-style token collapse. The group is anticipated to realize its aims by making use of requirements which might be endorsed by the crypto exchanges.

Screening Guidelines

Five of South Korea’s main home cryptocurrency exchanges have mentioned they plan to create a consultative physique whose mandate is to stop the recurrence of a token collapse just like that of the primary iteration of Terra’s LUNA. The consultative physique will obtain this by making use of agreed upon requirements, the exchanges mentioned.

According to a Yonhap News report, this plan by the exchanges was revealed on the party-government assembly held on the National Assembly not too long ago.

The resolution by the 5 exchanges, specifically Upbit, Bithumb, Coinone, Korbit, and Gopax, comes only a few weeks after they have been criticized for his or her seeming indifference to the collapse of the previous terra (LUNA) cryptocurrency and the terrausd (UST) stablecoin.

As per the report, the 5 exchanges will initially take totally different preparatory steps previous to the launch of the screening tips, and a few of these steps embrace the signing of a enterprise settlement in addition to bettering listing-related requirements.

Reviewing Tokens for Signs of a Ponzi Scheme

Meanwhile, the Korean language report additionally revealed that the consultative physique will comprise the CEOs of 5 exchanges and associated working teams. In addition to compliance and market monitoring, the physique can even put together a warning system, set delisting requirements, and supply info on cryptocurrency white papers.

The physique is anticipated to problem tips that will probably be used when itemizing cryptocurrencies in addition to when reviewing tokens for any indicators of a Ponzi scheme, the report mentioned. The exchanges, which all not too long ago announced the delisting of litecoin (LTC), have pledged to work collectively ought to one other disaster that’s just like the Terra fallout happen.

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