In the wake of the Terra (LUNA) crash, South Korean digital currency exchanges are looking to become self-regulatory. Five of the country’s top exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—have agreed to form a joint council to work on investor protection rules autonomously.
Local news outlet Yonhap News reports that the collaboration will see the exchanges set rules for listing, delisting, and uniformizing responses to unforeseen circumstances in the market.
The exchanges, which are all licensed to provide cash-to-digital currency services in South Korea, already have a timeline for when these rules will be rolled out. They told the National Assembly that beginning in July they will to include warnings in all digital currency-related marketing and advertising.
The group expects the token delisting standard and a warning system for potentially unsafe assets to be prepared by September. A white paper evaluation report will accompany this.
In October, the council will work on preparing a guideline for listing assets and reviewing tokens for any sign of a Ponzi scheme. By January 2023, it plans to make it mandatory for new investors to complete a set of educational materials before being allowed to trade. Added to this is the promise to respond in unison within 24 hours of any market crisis.
South Korea is tightening its digital currency regulatory net
The agreement is a response to criticisms exchanges faced in the aftermath of the UST and LUNA…
