The LUNA and UST fiasco trembled the entire crypto sector and numerous countries and companies took steps to regulate the crypto sector and prevent another such fiasco from happening. Subsequently, five South Korean cryptocurrency exchanges plan to create a consultative organization to prevent a repeat of the Terra LUNA-style token collapse. The organization is adamant that the objectives would be achieved by applying the standard endorsed by these five cryptocurrency exchanges.
The plan was disclosed at a party-government meeting held at the National Assembly of South Korea recently as reported by Yonhap News.
Coinone, Upbit, Gopax, Korbit, and Bithumb are the exchanges involved in the decision. However, the decision came just weeks after these exchanges were criticized for having indifference to the collapse of terrausd and LUNA.
The report states that all the exchanges will first take preparatory steps before actually launching a screening guideline. Experts believe that some of these preparatory steps will include the signing of a business agreement while also improving the listing-related standards.
It seems that the consultative body will comprise the CEOs of all the five cryptocurrency exchanges. Moreover, it will also include members of the related working groups. Additionally, the consultative body will also prepare a warning system alongside compliance and market monitoring. Furthermore, the body will also set delisting standards and will also provide information on cryptocurrency white papers.
It is expected that the consultative body will also issue guidelines that will be useful when listing a cryptocurrency as well as when reviewing tokens. Such will detect any Ponzi scheme according to the report published in the Korean language.
All the cryptocurrencies planning to form a consultative body and organization have recently announced the delisting of litecoin (LTC). Moreover, all the exchanges have pledged to work together to prevent any other such fiasco from happening to protect the valuable and hard-earned money for the investors.
The Terra LUNA fiasco resulted in investors losing millions of dollars and also trembled the entire crypto market. The plans to form a consultative body are a great sign that the crypto sector is going towards the right destination in South Korea.