According to local media reports in South Korea, the five largest cryptocurrency exchanges in the country plan to create a joint advisory body by the second half of 2022.
What is the goal of self-regulation in South Korea?
As a result of the collapse of the Terra ecosystem, which led to the collapse of the cryptocurrency market, Upbit, Bithumb, CoinOne, Cobit, and Gopax have now joined forces to prevent further tragedy.
The CEOs of all five exchanges will serve on the board for the exchange. The board will be divided into sections for transaction support, market surveillance, and compliance monitoring.
By working together as a team, companies are restoring the fairness of the virtual asset market and protecting investors by setting and improving industry standards. For example, exchanges in South Korea can withdraw some cryptocurrencies from trading when they decide to do so. This is a form of self-regulation of the industry.
Advertisers of cryptocurrencies in South Korea will be required to include a warning about investments in their promotions from July.
By September, the consultative body will have an alarm system in place regarding cryptocurrencies, and criteria for removing uncertain projects from the market. This will enable them to respond to another similar incident like Terry’s, where deposits and withdrawals are temporarily suspended. They will also be able to create a system to list audits and risk assessments related to cryptocurrencies.
Each sector of the body will collect expert opinions through seminars and case studies.
Companies also want to take care of education. As early as January 2023, new investors in the market will likely need to watch relevant educational videos before they can even invest in cryptocurrencies.
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