South Korea’s incoming crypto investor protection laws will see local exchanges review over 1,300 listed tokens over the next six months.
A collective of 20 South Korean crypto exchanges has eased concerns that the country’s new digital asset regulations would necessitate the immediate delisting of many tokens.
The Digital Asset Exchange Alliance (DAXA) stated in a July 2 statement that mass delisting occurring all at once is unlikely, as the exchanges will evaluate 1,333 cryptocurrencies over the next six months as part of the new crypto user protection laws.
As part of the nation’s new investor protection regulations that will be implemented on July 19, South Korea’s exchanges, including the country’s largest exchanges, Bithumb and Upbit, must evaluate the cryptocurrencies listed on their platforms.
Following implementing the new regulations, DAXA announced that the Protection of Virtual Asset Users Act will evaluate all new token listings.
The industry body stated that it collaborated with the 20 exchanges to develop a best practices guideline that outlines the process for reviewing and terminating support for cryptocurrencies.
The guidelines delineate the process for evaluating token issuers in terms of regulatory compliance, user protection, and reliability.
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According to DAXA, cryptocurrencies traded for more than two years in “eligible overseas virtual asset markets with sufficient regulation” will be subject to a more relaxed “alternative screening plan.”
It was further stated that research and consultation with exchanges are currently underway to establish a specific list of eligible overseas markets. However, this list will encompass those on the International Organization of Securities Commissions (IOSCO) board.
South Korea is a substantial participant in the global cryptocurrency markets. Its won currency was the most traded fiat currency in the year’s first quarter, with a trading volume of $456 billion on exchanges. This volume marginally exceeded the $455 billion volume of the U.S. dollar.
According to CoinGecko, Upbit is the largest exchange in the country. It is presently ranked among the top 20 exchanges by daily volume, with $889.3 million traded on its platform in the past 24 hours.
