South Korean financial authorities may delist about 600 altcoins this year under the new Virtual Asset User Protection Act.
According to Korean news medium Dnews, which cites sources familiar with the situation, South Korea’s financial authorities will start re-evaluating more than 600 cryptocurrency listings on local trading platforms in July after the implementation of the Virtual Asset User Protection Act.
The new regulation is expected to take effect on July 19, and the Korean financial regulators are allegedly finishing up the procedures for cryptocurrency listings.
About thirty-six cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—are registered under the rules; these platforms will carry out preliminary evaluations before deciding whether to keep or delist each token.
A review committee will be established by crypto exchanges under the new regulatory framework to assess a range of elements, including regulatory compliance, technical and security requirements, user protection protocols, and the credibility of the issuing entity.
Token holders and trading platforms may have conflicts of interest. Other requirements include the issuer’s track record and competencies, information disclosure, operational transparency, market capitalization, and total supply and circulation.
Tokens issued by decentralized autonomous organizations (DAOs) might not meet standard requirements, according to the report. On the other hand, tokens that have been traded regularly for more than two years in regulated markets—like the United States, the United Kingdom, France, Germany, Japan, Hong Kong, Singapore, India, and Australia—will go through a less intense review process.
The ability to take money from cryptocurrency exchanges in exchange for listing tokens will also be prohibited. Tokens that are considered “problematic” will be subject to quarterly reviews, the paper states, and may be delisted or marked as cautionary.
Maintenance evaluations will occur every three months after crypto exchanges have had a six-month window to decide whether to keep supporting their current coin listings.
