A consortium of 20 South Korean cryptocurrency exchanges has alleviated concerns regarding the impact of the country's recent digital asset regulations on the mass delisting of tokens. The exchanges are set to conduct a comprehensive review of 1,333 cryptocurrencies within the next six months in alignment with the new crypto user protection laws. The Digital Asset Exchange Alliance (DAXA) stated on July 2 that the likelihood of a sudden mass delisting is low under these regulations. South Korea's prominent exchanges such as Bithumb and Upbit are mandated to assess the listed cryptocurrencies on their platforms as part of the nation's latest investor protection legislation scheduled to be enforced on July 19.
DAXA emphasized that all new token listings will be evaluated under the Protection of Virtual Asset Users Act following the implementation of the new regulatory framework. The industry body collaborated with the 20 exchanges to develop a set of best practices guidelines on how to review and discontinue support for cryptocurrencies, focusing on factors like issuer reliability, user protection, and adherence to regulatory standards.
An 'alternative screening plan' with more relaxed criteria will be applicable to cryptocurrencies that have been actively traded for over two years in overseas virtual asset markets that meet sufficient regulatory standards, according to DAXA. The organization is engaged in research and discussions with exchanges to compile a specific list of approved overseas markets, including those recognized by the International Organization of Securities Commissions (IOSCO).
South Korea holds a significant position in the global cryptocurrency markets, with its currency, the won, ranking as the most traded fiat currency pair in the first quarter of the year, surpassing the U.S. dollar in trading volume. Upbit, the largest exchange in the country, is among the top 20 exchanges based on daily trading volume, with $889.3 million traded on its platform in the past 24 hours according to CoinGecko.
The recent regulatory changes aim to enhance accountability and transparency within the cryptocurrency ecosystem, ensuring the protection of virtual asset users and promoting regulatory compliance among exchanges and token issuers.
