According to the South Korean news agency Haberleri1, South Korean financial authorities are preparing to introduce stricter regulations for new altcoin listings on the country’s centralized cryptocurrency exchanges. The new rules are expected to be published by the end of this month.
Stricter Rules Being Introduced for New Altcoin Listings
The proposed rules include preventing coins/tokens issued by altcoin projects with unresolved security issues from past attacks from being listed on centralized cryptocurrency exchanges in the country, thereby increasing the security measures in the cryptocurrency sector. With these new rules, coins/tokens from such projects will be barred from being listed on South Korea’s centralized cryptocurrency exchanges.
The Financial Services Commission of South Korea (FSC) is also reported to be considering making it mandatory for foreign altcoin projects to develop technical reviews specific to the local market in order to be listed on the country’s cryptocurrency exchanges. In addition to addressing security concerns, the proposed rules could also force local cryptocurrency exchanges to delist altcoins if issuers do not adequately disclose fundamental information, such as inconsistencies between the actual circulating supply and the announced supply. This move is part of the government’s goal to ensure transparency and accountability in the cryptocurrency ecosystem.
It is among the information received that altcoins listed on licensed cryptocurrency exchanges for over two years will be exempt from these new rules and a degree of regulatory leniency will be shown for established altcoin projects in the country.
New Rules Expected to Be Published by the End of This Month
After gathering feedback on the new rules and conducting consultations with local cryptocurrency exchanges to ensure alignment with industry practices and standards, the South Korean government is expected to publish the new rules by the end of this month.
As it is known, South Korea is one of the world’s most vibrant cryptocurrency markets with high trading activity on local cryptocurrency exchanges. Current data reveals that Upbit, South Korea’s largest cryptocurrency exchange, generated over $221 billion in spot trading volume in March alone, accounting for approximately 9% of the global spot trading volume.
