- South Korea reviews 1,333 tokens to check their compliance with user protection legislation in the next six months.
- The announcement eliminates speculations of a mass token delisting.
- 20 exchanges have partnered with DAXA, establishing self-regulatory guidelines for listing and delisting tokens.
South Korea plans to systematically assess 1,333 altcoins over the next six months to determine compliance with the nation’s forthcoming user protection legislation, set to take effect on July 19th. This review, while extensive, lessens concerns of a potential “mass delisting” in the country’s crypto market, as indicated in a Bloomberg report.
The proposed review, encompassing over 600 digital assets currently traded on South Korean crypto exchanges, is a key component of the country’s first comprehensive law on virtual asset user protection. Twenty-nine crypto trading platforms, including prominent exchanges like Upbit, Gopax, and Bithumb, have been tasked with evaluating their listed tokens’ adherence to the new regulations.
South Korea’s crypto market is notably dominated by smaller tokens, rather than Bitcoin. Initial concerns about a potential mass delisting following the announcement of these new regulations have been calmed by recent reports suggesting such an event is unlikely. The Digital Asset Exchange Alliance (DAXA), an industry body comprising five major South Korean exchanges, has mandated that exchanges complete their token reviews within the next six months.
Reports suggest that 20 South Korean crypto exchanges have adopted self-regulatory guidelines for listing and delisting cryptocurrencies, in collaboration with DAXA. Since the start of 2024, DAXA members have delisted approximately 39 tokens.
In a parallel development, South Korea has introduced new crypto regulatory norms designed to align with public demand for crypto-friendly policies. These policies aim to strike a balance between meeting the needs of the crypto community and adhering to global financial standards.
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