The Financial Service Commission (FSC) of South Korea has issued a notice to 29 registered cryptocurrency exchanges, including major platforms like Upbit, Bithumb, Coinone, Korbit, and Gopax, instructing them to regularly assess the tokens they have listed and determine whether to continue supporting their trading activities.
South Korea is gearing up to enforce a law aimed at protecting virtual asset users, with implementation expected by July 19th. The new legislation carries severe penalties, such as a jail term exceeding one year or a fine ranging from three to five times the amount of illicit gains for violators. As part of the new law, all 29 registered crypto exchanges are required to review the over 600 crypto tokens listed on their platforms.
Under this law, crypto exchanges must adhere to stricter guidelines for reviewing token listings and evaluate the tokens already listed every six months to ensure compliance with the updated criteria. Following the initial review, exchanges must conduct maintenance assessments every three months to uphold the standards.
Earlier in February, South Korea amended the Virtual Asset Users Protection Act, and in April, the FSC hinted at implementing more stringent regulatory measures for listing new tokens on crypto exchanges. This move aimed to enhance market monitoring and security, potentially prohibiting tokens from projects with security breaches or unresolved issues from being listed on local exchanges.
In addition to these developments, the FSC is also working on new guidelines for cryptocurrency transactions on exchanges, which could be enforced alongside the user protection law in July. The authorities are restructuring their organizational setup to streamline policies for the cryptocurrency sector, with plans to establish a dedicated bureau focusing on virtual assets and overseeing the industry’s regulatory framework. A proposal for this initiative is set to be introduced on June 17th and reviewed by June 18th.