FameEX Hot Topics | South Korean Crypto Association Claims Mass Token Delistings 'Unlikely' Under New Laws

South Korea is set to implement new crypto investor protection laws, prompting local exchanges to review over 1,300 listed tokens within the next six months. A coalition of 20 South Korean crypto exchanges, united under the Digital Asset Exchange Alliance (DAXA), has assured that these regulations will not result in a mass delisting of tokens. DAXA stated on July 2 that a total of 1,333 cryptocurrencies will undergo review as part of the new user protection laws, emphasizing that a simultaneous mass delisting is unlikely.

Beginning on July 19, South Korean exchanges are required to evaluate the cryptocurrencies listed on their platforms under the new investor protection regulations. DAXA explained that all new token listings will be assessed according to the Protection of Virtual Asset Users Act, which will be in effect following the implementation of these new rules.

To standardize the review process and the termination of support for cryptocurrencies, DAXA and the 20 exchanges have developed a best practices guideline. These guidelines establish a framework for evaluating token issuers based on reliability, user protection, and regulatory compliance.

Furthermore, DAXA mentioned an "alternative screening plan" for cryptocurrencies that have been traded for over two years in "eligible overseas virtual asset markets with sufficient regulation." The organization is conducting research and consulting with exchanges to determine a specific list of these eligible markets, which will include those recognized by the International Organization of Securities Commissions (IOSCO).

South Korea plays a significant role in the global cryptocurrency markets. In the first quarter of this year, the South Korean won was the most traded fiat currency on exchanges, with a trading volume of $456 billion, slightly surpassing the $455 billion volume of the U.S. dollar.

In conclusion, South Korea’s crypto exchanges will conduct a thorough review of listed tokens under the new protection laws, alleviating concerns of mass delisting. These regulations aim to enhance investor protection, maintain market stability, and ensure compliance with international standards.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.