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South Korea to reconsider hundreds of cryptocurrency listings under new law: report
South Korea will review listings of more than 600 tokens on domestic cryptocurrency exchanges next month under new regulatory measures.
South KoreaFinancial authorities will begin revaluing over 600 cryptocurrency listings on domestic trading platforms starting in July, following the implementation of the Virtual Asset User Protection Act, according to Korean media outlet Dnews relationshipsciting sources familiar with the matter.
Korean financial regulators are reportedly finalizing the paperwork for listing cryptocurrencies, which is expected to be enforced starting July 19 under the new law. The regulations will apply to nearly three dozen registered cryptocurrency exchanges, including Upbit, BitumbCoinone, Korbit and Gopax, who will conduct initial reviews to determine whether to keep or remove each token.
Under the new regulatory framework, cryptocurrency exchanges must establish a review committee to evaluate various factors such as the reliability of the issuing entity, user protection measures, technology and security standards, as well as regulatory compliance.
Additional criteria include the capabilities and reputation of the issuer, past corporate history, information disclosure, operational transparency, total supply and circulation, market capitalization and potential conflicts of interest between a trading platform and holders of tokens.
The report notes that tokens issued by decentralized autonomous organizations (DAO) may not meet the standard requirements, while tokens that have been traded normally for more than two years in regulated markets such as the US, UK, France, Germany, Japan, Hong Kong, Singapore, India and Australia will be subject to less stringent requirements review process. Additionally, cryptocurrency exchanges will be banned from accepting payments in exchange for listing a token.
Subsequent reviews will occur quarterly and tokens deemed “problematic” will be designated as precautionary and potentially delisted, the report said. Cryptocurrency exchanges will have a six-month period to evaluate whether to continue supporting existing cryptocurrency listings, followed by maintenance reviews every three months.