South Korea to reconsider hundreds of crypto listings under new law: report

As a long-term crypto investor with experience in the Korean market, I welcome the regulatory measures being implemented by South Korea’s financial authorities. The review of over 600 tokens on domestic exchanges is a necessary step towards ensuring that investors are protected and that only legitimate projects are listed.


Next month, I will be part of the team in South Korea that conducts a review of more than 600 cryptocurrency listings on local exchanges as part of newly implemented regulatory measures.

Starting in July, South Korea’s financial regulatory body will reassess over 600 cryptocurrencies listed on local exchanges, according to a report by Dnews, based on information from reliable sources. This move comes after the enactment of the Virtual Asset User Protection Act.

As a crypto investor, I’ve been keeping an eye on the latest developments in South Korea’s cryptocurrency market. According to reports, the Korean financial regulators are in the final stages of establishing guidelines for crypto listings, which will take effect starting July 19 under the new law. These regulations will affect approximately three dozen registered crypto exchanges, such as Upbit, Bithumb, Coinone, Korbit, and Gopax. Each exchange will be required to carry out initial assessments to decide whether to continue listing or delist specific tokens based on these new regulations.

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

As a researcher, I consider various factors beyond just the technical specifications when evaluating a cryptocurrency or token. These additional criteria encompass the abilities and trustworthiness of the entity behind the issuance, their past business record, transparency in sharing information, clarity on operational procedures, total quantity in circulation, market size, and potential conflicts of interest between the trading platform and token holders.

In simpler terms, DAO-issued tokens might not adhere to standard regulations, whereas tokens that have been circulating in regulated markets like the US, UK, France, Germany, Japan, Hong Kong, Singapore, India, and Australia for over two years will undergo a more lenient evaluation. Furthermore, cryptocurrency exchanges are prohibited from receiving compensation for listing a token on their platform.

The report states that evaluations will be conducted every three months after an initial review, during which any tokens identified as questionable may be labeled as warning signs and could potentially be removed. Crypto platforms will be granted a six-month window to decide whether to keep supporting listed cryptocurrencies, followed by regular checks every three months thereafter.

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2024-06-17 10:12