Regulation
What this means for cryptocurrency investors
The cryptocurrency market in South Korea is about to undergo a major shakeup! New investor protection laws will go into effect on July 19, forcing exchanges to scramble and potentially delist cryptocurrencies. Will your favorite coin survive the purge?
Take a deep dive into how these regulations will reshape Korean markets.
What do these changes mean for the market and traders?
The Virtual Asset User Protection Act, enacted on July 18, 2023 and effective July 19, 2024, aims to protect cryptocurrency investors and regulate the virtual asset market. This pioneering law addresses unfair business practices and introduces essential user protection measures, marking South Korea’s first comprehensive regulation for the virtual asset sector.
A closer look at the exchanges
South Korea’s major exchanges, such as Upbit, are gearing up to comply with the new regulations. The Digital Asset Exchange Alliance, which represents these exchanges, has announced a comprehensive review of 1,333 altcoins over the next six months to ensure compliance. The reassessment is aimed at preventing immediate mass delistings, alleviating concerns about a sudden reduction in the number of available tokens.
Upbit, one of the world’s leading exchanges and the leading platform in South Korea, is facing increased operational costs due to these new regulations. With a 24-hour trading volume of $783 million and 204 listed coins, Upbit’s compliance efforts will be closely monitored. Notably, trading pairs like ZRP/KRW (13.48%) and BTC/KRW (11.69%) dominate the platform, with LayerZero, BitcoinTaiko, Solana, XRP And Ethereum among the best pieces.
Mixed reactions
The introduction of these laws has already impacted the cryptocurrency market, with prices falling as investors assess the potential changes. However, specific cryptocurrencies like LayerZero and Taiko have shown resilience, recording significant gains over the past week. LayerZero recorded a 7-day increase of +34.9% and a 24-hour increase of +9.2%. Taiko recorded a 14-day change of +23.9%, a 7-day change of +26.7%, and a 24-hour gain of +5.4%.
Looking forward
As the South Korean cryptocurrency market adjusts to these new regulations, investors should stay informed about potential changes in token availability and market dynamics. The coming months will be crucial in shaping the future of cryptocurrency trading in the region.
Read also : South Korea Cryptocurrency Regulations 2024
Is stricter regulation good for the cryptocurrency market in the long term?