FameEX Hot Topics | South Korean Crypto Association Asserts Mass Token Delistings 'Unlikely' Despite New Laws

South Korea's incoming crypto investor protection laws will prompt local exchanges to review over 1,300 listed tokens within the next six months. A coalition of 20 South Korean crypto exchanges has assured that the new digital asset regulations will not lead to a mass delisting of tokens. According to the Digital Asset Exchange Alliance (DAXA), the exchanges will review a total of 1,333 cryptocurrencies over the next six months as part of the new user protection laws. "The possibility of mass delisting occurring all at once is unlikely," DAXA stated on July 2.

Starting July 19, South Korean exchanges must review the cryptocurrencies listed on their platforms under the new investor protection laws. DAXA explained that all new token listings will be evaluated in line with the Protection of Virtual Asset Users Act following the implementation of the new rules.

The industry body has created a best practices guideline in collaboration with the 20 exchanges to standardize the review process and the termination of support for cryptocurrencies. These guidelines provide a framework for assessing token issuers for reliability, user protection, and regulatory compliance.

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

South Korea holds a significant position in the global cryptocurrency markets. In the first quarter of the 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 summary, South Korea’s crypto exchanges will meticulously review listed tokens under the new protection laws, mitigating fears of mass delisting. These regulations aim to enhance investor protection while maintaining market stability and ensuring 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.