South Korea’s cryptocurrency association assures that local trading platforms are unlikely to undergo “mass delistings” despite their upcoming re-evaluation of 1,333 tokens over the next six months.
South Korean crypto exchanges are preparing to reassess more than 1,000 tokens they previously listed, following the enactment of the Virtual Asset User Protection Act, aimed at safeguarding crypto investors’ rights and interests.
In a statement released on July 2nd, the Digital Asset Exchange Alliance (DAEX), a consortium representing five South Korean crypto exchanges, disclosed that from July 19th onwards, approximately 20 domestic exchanges will undertake a comprehensive six-month review of 1,333 tokens in response to recent recommendations from South Korean authorities.
Addressing potential market impacts, the alliance underscored that major domestic crypto exchanges have already adopted crucial monitoring criteria, reducing the likelihood of widespread delistings.
Simultaneously, the alliance indicated that only disqualification criteria will be made public, withholding other details “to prevent misuse in the market.” As reported by crypto.news earlier, the revised regulations will affect nearly thirty registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, which will initiate preliminary evaluations to decide whether to retain or remove each token.
Under the updated regulatory framework, crypto exchanges must establish a review committee tasked with assessing factors such as the credibility of the issuing entity, user protection measures, technological and security standards, and regulatory adherence.
Tokens issued by decentralized autonomous organizations (DAOs) may fail to meet standard requirements, while tokens with a history of normal trading exceeding two years in regulated markets like the US, UK, France, Germany, Japan, Hong Kong, Singapore, India, and Australia will undergo a less stringent review process. Furthermore, crypto exchanges will be prohibited from receiving payments in exchange for token listings.
For more information, South Korea’s Ministry of Justice has formed a task force aimed at curbing cryptocurrency-related crimes.