South Korean Crypto Exchanges Alleviate Token Delisting Concerns Amid New Regulations
A group of 20 cryptocurrency exchanges in South Korea has taken measures to address worries about the potential mass delisting of tokens due to the country’s new regulations on digital assets.
To comply with the newly introduced laws aimed at protecting crypto users, the exchanges have announced that they will conduct a thorough review of 1,333 cryptocurrencies over the next six months.
The objective of this move is to minimize the risk of sudden and widespread delisting events, as stated in a press release by the Digital Asset Exchange Alliance (DAXA) on July 2.
Under the new investor protection laws, all South Korean exchanges, including major platforms like Bithumb and Upbit, are required to undergo this review process, which will come into effect on July 19.
DAXA has outlined that the assessment of new token listings will be based on the Protection of Virtual Asset Users Act, which serves as the benchmark following the implementation of the regulations.
To ensure a standardized approach, DAXA has collaborated with the 20 participating exchanges to develop a set of best practice guidelines for reviewing and discontinuing support for cryptocurrencies.
DAXA further explained that cryptocurrencies that have been actively traded for over two years on eligible overseas virtual asset markets with robust regulatory frameworks will be subject to a more lenient “alternative screening plan.”
The organization is currently conducting research and consultations with the exchanges to compile a specific list of eligible overseas markets, including those recognized by the International Organization of Securities Commissions (IOSCO).
South Korea holds a significant position in the global cryptocurrency market, with the South Korean won being the most traded fiat currency pair in the first quarter of the year.
The trading volume for the won reached $456 billion on exchanges, slightly surpassing the $455 billion traded in U.S. dollars.
According to data from CoinGecko, Upbit, the largest exchange in the country, ranks among the top 20 exchanges based on daily trading volume, recording $889.3 million in trades on its platform in the last 24 hours.
A recent survey has revealed that a majority of young South Koreans are losing faith in the national pension system and are turning to crypto and stocks as a better alternative.
The study found that over three-quarters of people aged 20-39 “don’t trust” state-issued pensions. More than half of respondents who were making their own pension plans claimed to be building their retirement funds with stocks and crypto.
Interestingly, even election candidates themselves have invested in cryptocurrencies, with approximately 7% of them owning digital assets, according to a report by Yonhap that analyzed their asset disclosures.
Recently, it was reported that South Korea is planning to implement stricter regulations for token listings on exchanges, including the blocking of tokens that have been hacked.
The country’s financial authorities are expected to release guidelines for virtual asset trading support by the end of this month or early next month.
