A group of 20 South Korean crypto exchanges has alleviated fears that the country’s new crypto asset rules will lead to the delisting of numerous tokens simultaneously. Digital Asset Exchange Alliance (DAXA), in an announcement on July 2, stated that as part of the new crypto user protection laws, exchanges will review a total of 1,333 cryptocurrencies over the next six months, indicating a low likelihood of mass delistings at once.
Statement on the Bill Came Quickly
South Korean exchanges, including the country’s largest crypto exchanges Bithumb and Upbit, need to review the cryptocurrencies listed on their platforms as part of the new investor protection laws that will take effect on July 19.
DAXA stated that all new token listings will be evaluated according to the Crypto Asset User Protection Act following the introduction of the new rules. The industry organization said it has created a best practices guide with 20 exchange platforms on how to review and terminate support for cryptocurrencies.
The guidelines outline how token-issuing organizations will be evaluated in terms of reliability, user protection, and regulatory compliance.
South Korea and the Crypto Market
DAXA said a more relaxed alternative screening plan would be implemented for cryptocurrencies that have been traded for over two years in adequately regulated overseas crypto asset markets. It added that research and consultations with exchanges to create a specific list of suitable overseas markets are ongoing, but it will include those on the board of the International Organization of Securities Commissions (IOSCO).
South Korea is a significant player in global crypto markets. The currency won was the most traded fiat currency pair in the first quarter of the year, with a volume of $456 billion on exchanges, surpassing the $455 billion volume of the US dollar. Upbit, the country’s largest exchange, is currently among the top 20 exchanges in terms of daily volume, with $889.3 million traded on its platform in the last 24 hours, according to CoinGecko.
