Author: Jesse Coghlan, CoinTelegraph; Translated by: Wuzhu, Golden Finance
A group of 20 South Korean cryptocurrency exchanges has eased concerns that the country’s new digital asset rules will lead them to immediately delist a large number of tokens.
The exchanges will review a total of 1,333 cryptocurrencies over the next six months as part of a new cryptocurrency user protection law, the Digital Asset Exchange Alliance (DAXA) said in a July 2 statement, meaning “immediate mass delistings are unlikely.”
As part of South Korea’s new investor protection law that came into effect on July 19, South Korean exchanges, including the country’s largest Bithumb and Upbit, must review the cryptocurrencies listed on their platforms.
DAXA said that after the new rules are introduced, all newly listed tokens will be evaluated under the Virtual Asset User Protection Act.
The industry body said it worked with 20 exchanges to develop best practice guidelines on how to review and end support for cryptocurrencies.
The guidance outlines how to assess token issues for trustworthiness, user protection, and regulatory compliance.
Translated excerpt from DAXA’s statement discussing guidelines for token issues. Source: DAXA
DAXA said the more relaxed “alternative screening scheme” will apply to cryptocurrencies that have been traded for more than two years in “qualified, adequately regulated overseas virtual asset markets.”
It added that studies and consultations were ongoing with exchanges to develop a specific list of eligible overseas markets, but that it would include board members of the International Organisation of Securities Commissions (IOSCO).
South Korea is a major player in the global crypto market. The South Korean won was the most traded fiat currency pair in the first quarter of this year, with $456 billion in exchange volume, slightly higher than the U.S. dollar at $455 billion.
Upbit is the country’s largest exchange and currently ranks in the top 20 by daily trading volume, with $889.3 million traded on its platform in the past 24 hours, according to CoinGecko.
