A collective of 20 South Korean cryptocurrency exchanges has taken steps to alleviate concerns regarding the potential mass delisting of tokens due to the country’s new digital asset regulations.
The exchanges have announced that they will conduct a comprehensive review of 1,333 cryptocurrencies over the next six months as part of the newly introduced crypto user protection laws.
This move is intended to minimize the likelihood of a sudden and extensive delisting event, according to a statement by the Digital Asset Exchange Alliance (DAXA) on July 2.
South Korea’s New Law Requires Exchanges to Review Listings
The review process is a mandatory requirement for all South Korean exchanges, including prominent platforms like Bithumb and Upbit, as specified by the investor protection laws set to take effect on July 19.
DAXA outlined that the Protection of Virtual Asset Users Act will serve as the benchmark for assessing new token listings following the implementation of the regulations.
To facilitate a standardized approach, DAXA collaborated with the 20 participating exchanges to develop a set of best practices guidelines for reviewing and discontinuing support for cryptocurrencies.
DAXA further explained that a more lenient “alternative screening plan” will be applied to cryptocurrencies that have been actively traded for over two years on eligible overseas virtual asset markets with robust regulatory frameworks.
The organization stated that it is currently conducting research and consultations with the exchanges to compile a specific list of eligible overseas markets, which will include those recognized by the International Organization of Securities Commissions (IOSCO).
South Korea plays a significant role in the global cryptocurrency market, with the South Korean won being the most traded fiat currency pair in the first quarter of the year.
Trading volume for the won reached $456 billion on exchanges, slightly surpassing the $455 billion traded in U.S. dollars.
Upbit, the country’s largest exchange, 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, according to data from CoinGecko.
South Koreans Turn to Crypto
A recent survey has revealed that most young South Koreans are losing faith in the national pension system, with many stating they see crypto and stocks as a better alternative.
The study found that more than three-quarters of people aged 20-39 “don’t trust” state-issued pensions.
Over half of respondents who said they were making their own pension plans claimed they were building their retirement funds with stocks and crypto.
Interestingly, even election candidates themselves have exposure to cryptocurrencies, with approximately 7% of them owning digital assets, according to a report by Yonhap that analyzed their asset disclosures.
Just recently, it was reported that South Korea is set to introduce stricter regulations for token listing on exchanges, including the blocking of tokens that have been hacked.
The country’s financial authorities are preparing to release guidelines for virtual asset trading support, expected to be published by the end of this month or early next month.
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