Top five crypto exchanges in South Korea are set to launch a consultative body for decision-making later this year. The crypto exchanges are Bithumb, Upbit, Cobit, CoinOne, and Gopax.
The need for such a body arose following the collapse of Terra’s ecosystem last month, which also resulted in a larger collapse of the crypto market. The five crypto exchanges intend to prevent Luna-like incidents from repeating.
The consultative body will include the chief executive officers of the respective crypto exchanges. It will be divided into Transaction Support, Compliance Monitoring, and Market Surveillance sector. The body will also have relevant working staff. It will work towards establishing common screening criteria related to trading support. The body aims to establish and improve the standards within the domain via “Restoring the Fairness of the Virtual Asset Market and Protecting Investors”.
This simply means that decisions taken by the crypto exchanges to delist certain cryptocurrencies will be taken on the same table based on money laundering assessment, and issuance beyond disclosure, as well as sudden fluctuation in the circulation volume or price, etc. The crypto sector in South Korea will see to that advertising crypto-related products, from July onwards, will carry an investment warning.
The consultation body is keen to establish a cryptocurrency alarm system and delisting criteria by September. It will also provide crypto evaluation and white papers. For Luna-like cases, the consultative body will pause cryptocurrency deposits and withdrawals. And by October, it will establish guidelines for listing audits and introducing crypto risk assessment. There are also plans for seminars to gather expert opinions as well as to conduct case studies.
New crypto investors, by 2023, will be required to complete relevant educational videos before they can invest in the sector to heighten protection.