An announcement from the South Korean news agency Haberleri1 highlighted that financial authorities in South Korea are set to impose more rigorous rules for new altcoin listings on the country’s centralized cryptocurrency exchanges. These stricter regulations are anticipated to be officially released by the conclusion of the current month.
The proposed guidelines aim to prevent the listing of coins/tokens from altcoin projects that have experienced security breaches in the past on South Korea's centralized cryptocurrency exchanges. This measure is intended to enhance security within the cryptocurrency sector. Consequently, tokens/coins from such projects will be restricted from being listed on these exchanges.
Reports suggest that the Financial Services Commission of South Korea (FSC) is contemplating mandating foreign altcoin projects to create market-specific technical evaluations to be eligible for listing on the country’s cryptocurrency exchanges. Besides addressing security matters, the new regulations could compel local cryptocurrency exchanges to delist altcoins if issuers fail to adequately disclose crucial information, such as discrepancies between the actual circulating supply and the stated supply. The objective of these regulations is to promote transparency and accountability within the cryptocurrency ecosystem.
It has been mentioned that altcoins listed on licensed cryptocurrency exchanges for more than two years will be exempt from these fresh regulations, indicating a degree of regulatory leniency towards established altcoin projects in South Korea.
Anticipated Release of New Regulations by Month-end
Following the collection of feedback on the proposed rules and engaging in consultations with local cryptocurrency exchanges to ensure compliance with industry standards and practices, the South Korean government is projected to unveil the new regulations by the end of the current month.
South Korea stands out as one of the most active cryptocurrency markets globally, featuring substantial trading volumes on local cryptocurrency exchanges. Recent data reveals that in March, Upbit, the largest cryptocurrency exchange in South Korea, facilitated over $221 billion in spot trading, representing about 9% of the global spot trading volume.
The original content first appeared on COINTURK NEWS: South Korea Tightens Rules for New Altcoin Listings.
