5 Korean Crypto Exchanges Create Plan To Prevent Luna Catastrophe

Five Korean cryptocurrency exchanges announced on June 13 that they are launching a joint consultative body to prevent the LUNA catastrophe from ever happening again and to apply common screening standards that are related to transaction support in the second half of 2022.

This announcement follows after domestic Korean exchanges faced criticism that they reacted questionably after LUNA’s collapse at the start of last month.

The exchanges that will launch these self-improvement plans include Upbit, BitHumb, Coinone, Korbit, and Gopax. These exchanges have decided to first sign a business agreement, after which they will launch a consultative body and autonomously prepare and improve listing-related standards and use it as a communication channel in order to respond to emergencies.

Some of the improvements that will be implemented are virtual currency warning systems and delisting standards. Furthermore, their main priorities will be transaction support, market monitoring, and compliance monitoring.

The exchanges will prepare guidelines for listing screening and will also introduce a policy to periodically evaluate the risks of virtual currency. These guidelines will be prepared around the common evaluation items that exchanges should consider.

In addition to this, the exchanges have prepared a crisis response plan. This means that if a coin were to run into any type of crisis, the exchanges will be able to discuss whether withdrawals of deposits of the currency should still be allowed.

The exchanges also promise that this crisis plan will ensure that they will be able to respond to any crisis within 24 hours.