Here’s How South Korea is planning to prevent another Terra chapter

Lavina Daryanani
Source: CryptoPotato

The top 5 crypto exchanges in South Korea are set to launch a joint consultative body to nip in the negligence bud and prevent the recurrence of events like that of the Terra ecosystem crash. Per a local news report, the same would be done so by applying “common screening standards” with respect to support, listing, etc.

“This is a follow-up action following criticism that domestic exchanges reacted differently at the time when the Korean cryptocurrency Luna (LUNC, formerly LUNA) and TerraUSD (UST) crashed early last month, adding to investor confusion.”

Outlining the 5 exchanges involved and their plans, the report highlighted,

Five major domestic exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, announced self-improvement plans with these contents at the party-government meeting held at the National Assembly on the 13th, ‘Recovering fairness in the virtual asset market and protecting investors.

How things will unfold?

These exchanges have, as such, decided to sign a business agreement initially, launch a joint consultative body, and then autonomously prepare and improve listing-related standards. Per the report, they’d also cater and respond to emergencies.

The consultation work is divided into three areas that include transaction support, market monitoring, and compliance monitoring. In fact, from September, they will also prepare a virtual currency warning system along with delisting standards.

When a Terra ecosystem-like debacle occurs, they intend to,

“… discuss whether to allow deposits and withdrawals of virtual currency and the date of the end of transaction support to respond jointly. If such a crisis occurs, it will be able to respond quickly within 24 hours.”

Alongside, they also intend to provide a whitepaper and evaluation report for virtual currencies and outline the risks.

With respect to other important dates, the guidelines for listing screening and to introduce a policy to periodically evaluate the risks of virtual currency would be prepared in October. And then, by the beginning of next year, new investors would mandatorily have to watch an educational video on digital assets before being allowed to trade.