South Korea to Review Thousands of Cryptocurrencies Industry Organization Says Unlikely to Simultaneously Delist a Large Number of Tokens

South Korea to Review Thousands of Cryptocurrencies Industry Organization Says Unlikely to Simultaneously Delist a Large Number of Tokens

South Korea to Review Thousands of Cryptocurrencies Industry Organization Says Unlikely to Simultaneously Delist a Large Number of Tokens

According to a report by Cointelegraph, an organization composed of 20 South Korean cryptocurrency exchanges has alleviated concerns from the public regarding new regulations in South Korea that were feared to lead to a mass delisting of tokens. As part of South Korea’s new Investor Protection Law effective from July 19, exchanges, including the largest two, Bithumb and Upbit, must conduct reviews of cryptocurrencies listed on their platforms. The Digital Asset Exchange Association (DAXA) of South Korea stated in a statement released on Tuesday (2nd) that following the introduction of the new rules, all new token listings will be assessed under the Virtual Assets User Protection Law. DAXA indicated that these exchanges will review a total of 1,333 cryptocurrencies over the next six months, implying that “the possibility of a one-time large-scale delisting is unlikely.” The industry body mentioned that it collaborated with the 20 exchanges to develop a best practices guideline detailing how to review and terminate support for cryptocurrencies. This guideline outlines evaluations of token issuers’ reliability, user protection, and regulatory compliance. DAXA noted that a more lenient “alternative screening plan” will apply to cryptocurrencies traded for over two years on “sufficiently regulated eligible overseas virtual asset markets.” The organization added that it is currently conducting research and consultations with exchanges to compile a specific list of qualified overseas markets, including members of the International Organization of Securities Commissions (IOSCO) board. South Korea is a significant participant in the global cryptocurrency market. According to cryptocurrency research firm Kaiko, the South Korean won was the largest fiat currency by cryptocurrency trading volume in the first quarter of this year, with exchanges totaling $456 billion, slightly surpassing the dollar’s $455 billion. Related articles: “Korean Cryptocurrency Culture: Why Koreans Like Cryptocurrency but Dislike DeFi?” “The Truth Behind the Madness | Data Reveals the Real Face of the Korean Cryptocurrency Market.”