Korean crypto exchanges to avoid ‘mass delistings’ despite new rules

As a seasoned crypto investor with experience in the South Korean market, I find the recent announcement by the Digital Asset Exchange Alliance reassuring. While the re-evaluation of over 1,300 tokens listed on local exchanges is a significant undertaking, I believe that mass delistings are unlikely.

As a researcher studying the cryptocurrency market in South Korea, I’ve come across information from the Korean Blockchain Association stating that local crypto exchanges are unlikely to carry out large-scale token delistings despite their ongoing review of approximately 1,333 tokens over the next six months.

Over 1,000 cryptocurrency tokens listed on South Korean exchanges will undergo re-evaluation in light of the recently enacted Virtual Asset User Protection Act. This legislation aims to safeguard the “rights and interests” of crypto investors.

Starting on July 19, approximately 20 homegrown cryptocurrency exchanges in South Korea, represented by the Digital Asset Exchange Alliance (DAEX), will initiate a six-month evaluation process for around 1,333 tokens. This action follows recent suggestions from Korean regulatory authorities.

In response to anticipated market fluctuations, the partnership highlighted that significant cryptocurrency exchanges based in the country have previously established essential screening standards. As a result, large-scale delistings are considered unlikely.

Approximately 1,333 assets underwent re-evaluation over a six-month period, which decreases the probability of large-scale delistings as some assets were removed accordingly.

The Digital Asset Exchange Alliance

Simultaneously, the partnership acknowledged that they would only reveal the specifications for disqualification, keeping other details under wraps to prevent potential misuse in the market. Previously reported by crypto.news, these new rules will impact around thirty registered cryptocurrency exchanges, such as Upbit, Bithumb, Coinone, Korbit, and Gopax, who will assess each token through an initial evaluation to decide whether to retain or remove them.

In the revised regulatory system, crypto platforms are required to set up a review panel for assessing several aspects. These include the trustworthiness of the coin issuer, safeguards for users, advanced technology and security protocols, and adherence to legal regulations.

As a token analyst, I’d interpret this as follows: DAO-issued tokens might not conform to the standard regulatory framework. In contrast, cryptocurrencies that have been circulating and traded legally for at least two years within major regulated markets such as the U.S., U.K., France, Germany, Japan, Hong Kong, Singapore, India, and Australia will undergo a more lenient review process. Moreover, crypto exchanges are prohibited from receiving any compensation for listing a token on their platform.

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2024-07-02 11:38