South Korea’s top crypto exchanges partner to prevent another Terra-like crash

South Korea’s top five domestic cryptocurrency exchanges are creating a consultative body to prevent the recurrence of a token collapse similar to that of the first iteration of Terra’s LUNA.

The consultative body will achieve this by applying agreed upon standards, the exchanges said.

According to a Yonhap News report, this plan by the exchanges was revealed at the party-government meeting held at the National Assembly recently.

The decision by the five exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, comes just a few weeks after they were criticized for their seeming indifference to the collapse of the former terra (LUNA) cryptocurrency and the terrausd (UST) stablecoin.

Meanwhile, the Korean language report also revealed that the consultative body will comprise the CEOs of five exchanges and related working groups.

In addition to compliance and market monitoring, the body will also prepare a warning system, set delisting standards, and provide information on cryptocurrency white papers.

The body is expected to issue guidelines that will be used when listing cryptocurrencies as well as when reviewing tokens for any signs of a Ponzi scheme, the report said.