Crypto Exchanges in South Korea Announce Joint Consultation Body for H2 2022

Local media in South Korea have confirmed that the top five crypto exchanges in the country will launch a joint consultative body for decision-making in the second half of 2022.

The decision follows the collapse of the Terra ecosystem last month, which had led to a larger crypto market collapse. Therefore, YNA noted that the exchanges including Upbit, Bithumb, CoinOne, Cobit, and Gopax have collectively vowed to prevent Luna-like repeat incidents through the consultative body.

Establishment of the crypto consultative body

The body will reportedly include the CEOs of all five exchanges and will be divided into Transaction Support, Market Surveillance, and Compliance Monitoring sectors with relevant working staff allocation.

The responsibilities of the collective would include establishing common screening criteria related to trading support (listing), along with “Restoring the Fairness of the Virtual Asset Market and Protecting Investors” by establishing and improving the standards within the domain.

This essentially means that the decision by crypto exchanges in South Korea to delist certain cryptocurrencies will also be taken on the same table based on money laundering assessment, issuance beyond disclosure, sudden fluctuation in the circulation volume or price, etc.

From July onwards, advertising cryptocurrency-related products will reportedly require an investment warning.

By September, the consultation body is said to establish a cryptocurrency alarm system and delisting criteria, while reportedly providing crypto evaluation and white papers. In the case of another Luna-like incident, the report underlined that a decision on pausing cryptocurrency deposits and withdrawals will be taken.

By October, the collective aims to establish guidelines for listing audits and introducing crypto risk assessment.

Each sector will gather expert opinions through seminars and overseas case studies, the report also remarked.

That said, by January 2023, new cryptocurrency investors will likely be required to complete relevant educational videos before they can invest in the sector to tighten protection.

Binance joins South Korean exchanges

When it comes to collective decision-making by exchanges in South Korea, the top domestic exchanges have set a date for the delisting of Litecoin. And owing to the series of such announcements following the Litecoin MimbleWimble Extension Blocks (MWEB) upgrade, Binance has also joined the queue.

In a release dated June 13, the largest exchange in terms of volume noted, “Binance will not support the deposits and withdrawals of Litecoin (LTC) that utilize the MimbleWimble Extension Blocks (MWEB) function, which provides users with an option of sending confidential LTC transactions without revealing any transaction information.”