According to Cointelegraph, an organization consisting of 20 South Korean cryptocurrency exchanges has alleviated concerns over the new regulations in South Korea that were expected to result in a large-scale delisting of tokens.
As part of the new Korean Investor Protection Act that came into effect on July 19, exchanges including the two largest ones, Bithumb and Upbit, are required to conduct reviews of the cryptocurrencies listed on their platforms. The Korean Digital Asset Exchange Association (DAXA) stated that all new token listings will be evaluated under the Virtual Assets User Protection Act after the introduction of the new rules.
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 mentioned that it has developed a set of best practices guidelines in collaboration with the 20 exchanges to outline how to review and terminate support for cryptocurrencies.
The guidelines outline the assessment of token issuers’ reliability, user protection, and regulatory compliance. DAXA stated that a more lenient “alternative screening plan” will apply to cryptocurrencies that have been traded on “sufficiently regulated qualified overseas virtual asset markets” for over two years.
The organization added that it is currently conducting research and discussions with exchanges to formulate 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, with a trading volume of $456 billion on exchanges, slightly higher than the $455 billion for the US dollar.
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