A consortium of 20 South Korean cryptocurrency exchanges has moved to ease concerns regarding the impact of the country’s new digital asset regulations, assuring that there will be no sudden mass delisting of tokens. Over the next six months, these exchanges will conduct a comprehensive review of 1,333 cryptocurrencies in compliance with newly enacted laws aimed at safeguarding crypto users, according to a statement released on July 2 by the Digital Asset Exchange Alliance (DAXA).
Commencing on July 19, South Korea’s exchanges, including major platforms like Bithumb and Upbit, are mandated to review all listed cryptocurrencies under the new investor protection regulations. DAXA emphasized that new token listings will be scrutinized under the Protection of Virtual Asset Users Act, which marks a pivotal shift in regulatory standards.
In collaboration with the 20 exchanges, DAXA has devised best practice guidelines outlining procedures for assessing token issuers’ reliability, user protection measures, and adherence to regulatory frameworks. A translated excerpt of DAXA’s statement discussing these guidelines for token issuers is included below:
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DAXA also detailed that cryptocurrencies trading for more than two years on regulated overseas virtual asset markets will undergo a less stringent “alternative screening plan.” The organization is actively researching and consulting with exchanges to compile a specific list of eligible overseas markets, which will include those recognized by the International Organization of Securities Commissions (IOSCO).
South Korea remains a pivotal figure in the global cryptocurrency landscape, with its currency, the won, leading the charts as the most traded fiat currency in the first quarter of the year, surpassing even the U.S. dollar with a trading volume of $456 billion on exchanges.
Upbit, the nation’s largest exchange, currently ranks among the top 20 exchanges worldwide by daily trading volume, having recorded $889.3 million traded on its platform in the last 24 hours according to CoinGecko.
For more insights into cryptocurrency exchanges and the management of deposited funds, visit: [Deposit risk: What do crypto exchanges really do with your money?]