Faced with a lack of action plan during the downfall of Terra and increased scrutiny from regulators, South Korea’s major crypto exchanges intend to set up a common advisory body.
The largest South Korean platforms Upbit, Bithumb, Coinone, Korbit and Gopax announced that an advisory body is needed to prevent a recurrence of incidents like the default of the Terra Ecosystem (LUNA), which led to significant losses of trading platforms.
The exchanges’ decision came after most platforms found themselves in the spotlight of regulators due to a lack of unity in addressing the issue of addressing the consequences of the collapse of the Terra ecosystem.”
Crypto exchanges signed an agreement where they committed to focus on the development of improved standards related to listing, which can be used as a communication channel for emergency response. The advisory body is going to be divided into working groups responsible for: monitoring the market, supporting transactions, monitoring compliance with the law. To prevent the consequences of incidents like the default of Terra, the body is going to be ready in September 2022.
The tasks of the advisory body will include assessing the feasibility of placing deposits and withdrawing assets. The body’s specialists will be required to provide feedback to crypto exchanges within 24 hours.
Recently, the Japanese Parliament passed a bill according to which stablecoins will receive the status of digital money. The document contains regulatory requirements for their launch.
Source: Bits
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