A group of 20 South Korean cryptocurrency exchanges has addressed concerns surrounding the impact of the new crypto asset regulations in the country. The Digital Asset Exchange Alliance (DAXA) released a statement on July 2 indicating that the impending legislation necessitates a comprehensive review of 1,333 cryptocurrencies within a six-month timeframe. This evaluation process is designed to mitigate the likelihood of widespread token delistings occurring simultaneously.

Response to Regulatory Changes

As the commencement date of the investor protection laws on July 19 approaches, prominent South Korean exchanges, including Bithumb and Upbit, are mandated to assess the cryptocurrencies listed on their platforms. DAXA has underscored that future token additions will be subject to stringent evaluations aligning with the Crypto Asset User Protection Act. The organization has collaborated with 20 exchange platforms to formulate guidelines for assessing and potentially discontinuing support for specific cryptocurrencies.

These guidelines emphasize the criteria for evaluating token-issuing entities based on their trustworthiness, commitment to user protection, and compliance with regulatory frameworks.

Evaluating Crypto Assets

DAXA has proposed a more lenient assessment approach for cryptocurrencies with a trading history exceeding two years in well-regulated overseas crypto markets. Collaborative efforts are underway to identify suitable international markets, with a preference for those recognized by the International Organization of Securities Commissions (IOSCO).

South Korea continues to play a significant role in the global crypto landscape, as evidenced by the Korean won's status as the most traded fiat currency pair in the first quarter, surpassing the trading volume of the US dollar. Upbit, a key exchange in the country, consistently ranks among the top 20 exchanges by daily trade volume, with notable transactions exceeding $889.3 million in the past 24 hours, according to data from CoinGecko.