According to a report by Cointelegraph, an organization consisting of 20 South Korean cryptocurrency exchanges has alleviated concerns about the new regulations in South Korea that could lead to a large number of tokens being delisted.
As part of the new Korean Investor Protection Act that came into effect on July 19, exchanges including the two largest ones in Korea, Bithumb and Upbit, are required to conduct reviews of the cryptocurrencies listed on their platforms. The Korea Digital Asset Exchange Association (DAXA) stated that after the introduction of the new regulations, all new token listings will be evaluated according to the Virtual Asset User Protection Act.
In a statement released on Tuesday, DAXA stated that these exchanges will review a total of 1,333 cryptocurrencies within the next 6 months, indicating that “the possibility of a one-time mass delisting is unlikely.” The industry organization stated that it has collaborated with the 20 exchanges to develop a best practice guideline to outline how to review and terminate support for cryptocurrencies.
The guideline outlines how to evaluate the reliability of token issuers, user protection, and regulatory compliance. DAXA mentioned that a more lenient “alternative screening plan” will be applicable to cryptocurrencies that have been traded on “qualified overseas virtual asset markets with sufficient regulation” for over two years.
The organization added that it is currently conducting research and negotiations with exchanges to create a specific list of qualified overseas markets, which will include members of the International Organization of Securities Commissions (IOSCO) board.
South Korea is a significant participant in the global cryptocurrency market. According to data from cryptocurrency research firm Kaiko, the South Korean Won was the largest fiat currency for cryptocurrency trading volume in the first quarter of this year, reaching $456 billion on exchanges, slightly surpassing the US Dollar’s $455 billion.
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