South Korea will review thousands of cryptocurrencies, and industry groups say it is unlikely to delist a large number of tokens at the same time

According to Cointelegraph, a group of 20 South Korean cryptocurrency exchanges has dispelled concerns that new South Korean regulations will lead to the delisting of a large number of tokens at once.

As part of South Korea’s new investor protection law that takes effect on July 19, exchanges including Bithumb and Upbit, two of the country’s largest exchanges, must review cryptocurrencies listed on their platforms. The Korea Digital Asset Exchange Alliance (DAXA) stated that after the new rules are introduced, all new token listings will be evaluated according to the Virtual Asset User Protection Act.

DAXA said in a statement released on Tuesday (2nd) that these exchanges will review a total of 1,333 cryptocurrencies in the next 6 months, which means that "a one-time large-scale delisting is unlikely." The industry body said it worked with 20 exchanges to develop a best practice guide on how support for cryptocurrencies should be reviewed and ended.

This guidance outlines how to assess token issuers for reliability, user protection and regulatory compliance. DAXA said a looser “alternative screening scheme” would apply to cryptocurrencies that have been traded on “qualified overseas virtual asset markets with adequate regulation” for more than two years.

The agency added that it is currently conducting research and consultations with exchanges to develop a specific list of eligible overseas markets, which will include members on the board of directors of the International Organization of Securities Regulators (IOSCO).

South Korea is a significant player in the global cryptocurrency market. The South Korean won was the most heavily traded fiat currency among cryptocurrencies in the first quarter of the year, with $456 billion traded on exchanges, slightly ahead of the U.S. dollar’s ​​$455 billion, according to cryptocurrency research firm Kaiko.

Related articles: "Korean Crypto Culture: Why do Koreans like cryptocurrencies, but not DeFi?" "The truth behind the madness | Data reveals the true face of the Korean crypto market"

Source