Korean cryptocurrency exchanges steer clear of potential risks
South Korea’s cryptocurrency association has stated that local trading platforms are unlikely to engage in “mass delistings” as they conduct a re-evaluation of 1,333 tokens over the next six months.
After the implementation of the Virtual Asset User Protection Act, South Korean crypto exchanges will review over 1,000 tokens that they previously listed in order to protect the rights and interests of crypto investors.
In a statement released on July 2nd, the Digital Asset Exchange Alliance (DAEX), a trade union representing five Korean crypto exchanges, announced that starting from July 19th, approximately 20 domestic crypto exchanges will undergo a six-month review period of 1,333 tokens based on recommendations put forth by South Korean authorities.
The alliance emphasized that major domestic crypto exchanges have already implemented key monitoring criteria, which reduces the likelihood of mass delistings in response to potential market changes.
However, the alliance stated that only disqualification criteria will be disclosed, and other details will not be made public to prevent misuse in the market. As previously reported by crypto.news, the new regulations will apply to nearly 30 registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, which will conduct initial reviews to determine whether to maintain or delist each token.
Under the new regulatory framework, crypto exchanges are required to establish a review committee to evaluate factors such as the reliability of the issuing entity, user protection measures, technology and security standards, as well as regulatory compliance.
Tokens issued by decentralized autonomous organizations (DAOs) may not meet the standard requirements, while tokens that have been traded normally for over two years in regulated markets such as the U.S., U.K., France, Germany, Japan, Hong Kong, Singapore, India, and Australia will undergo a less strict review process. Additionally, crypto exchanges will be prohibited from accepting any payments in exchange for listing a token.
Read more: South Korea’s Ministry of Justice forms task force to combat crypto crimes.
