Five South Korean cryptocurrency exchanges announced that they plan to establish a consultative group to prevent another Terra LUNA-style token crash. It is expected that the organization will achieve its goals by using standards that have been endorsed by crypto exchanges.
Five of South Korea’s most prominent cryptocurrency exchanges announced that they will create a consultative group whose mission is to prevent a similar token collapse to the one caused by Terra’s LUNA. According to the exchanges, the consultative body will accomplish this by applying agreed upon standard.
A Yonhap News report states that this plan was presented by the exchanges at the recent party-government meeting at the National Assembly.
Just a few weeks ago, the five exchanges Upbit, Bithumb and Coinone made the decision to close their doors. This comes after they were criticised for not being able to respond to the collapse in the former Terra ( LUNA) cryptocurrency, and the Terrausd (UST).
According to the report, five exchanges will take different preparatory actions prior to the launch screening guidelines. These steps include signing a business agreement and improving listing standards.
Examining Tokens to Find Signs of a Ponzi Scheme
The Korean language report revealed that the advisory body would include the CEOs of five exchanges as well as related working groups. The body will not only monitor the market and ensure compliance, but also provide information about white papers and delisting standards.
According to the report, the body will issue guidelines for listing cryptocurrencies and reviewing tokens for signs of Ponzi schemes. All the exchanges recently delisted litecoin ( LTC), and they have promised to work together in case of another similar crisis.