South Korean Crypto Exchanges to Create Body to Preempt Another Terra LUNA Type of Collapse – Exchanges Bitcoin News

Five South Korean cryptocurrency trading platforms announced their intention to form a consultative body that will prevent another Terra LUNA-style crypto token crash. It is anticipated that the organization will achieve its goals by using standards that have been endorsed by crypto exchanges.

Screening Guidelines

Five of South Korea’s leading domestic cryptocurrency exchanges have said they plan to create a consultative body whose mandate is to prevent the recurrence of a token collapse similar to that of the first iteration of Terra’s LUNA. They stated that the consultative body would achieve this goal by applying established standards.

Yonhap News reported that the plans were revealed by the exchanges during the party-government meeting, held recently 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 being criticized for seeming indifferent to the fall of former terra (LUNA), cryptocurrency, and terrausd(UST) stablecoin.

The report states that the initial steps of five exchanges before the release of screening guidelines will be different. Some of these preparatory steps include the sign of business agreements and the improvement of listing standards.

Check out Tokens and Look for Warning Signs of a Ponzi Scheme

According to the Korean language report, five chief executives of exchanges were named as the members of the consultative group. This body will provide market information, compliance monitoring and advice, along with setting delisting standards and a warning system.

It is anticipated that the body will issue guidelines to be used in listing cryptocurrencies and when reviewing tokens looking for signs of Ponzi schemes, according to the report. All three exchanges announced recently the removal of litecoin from their listings (LTC). They have also pledged cooperation in case another similar crisis occurs.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.