New regulations drafted by South Korea's financial security regulator to protect users' crypto assets when purchasing and storing them with virtual asset service providers (VASPs) came into force on July 19.

According to the regulation titled "Virtual Asset User Protection Act", VASPs must take various steps to protect users' crypto assets. These include insuring users' crypto assets against hacks and malicious attacks, keeping customer assets separate from the exchange's assets, and keeping customer deposits securely in banks.

VASPs must also exercise a certain level of due diligence to prevent money laundering and report suspicious transactions to the regulator. South Korea's Financial Services Commission (FSC) stated that these laws will come into force on July 19.

The new regulations have raised concerns about crypto exchanges suddenly delisting a number of tokens. However, the Digital Asset Exchange Alliance (DAXA) has stated that such a mass delisting transaction is unlikely.

Share your opinions in the comments and let's discuss the effects of these regulations on the crypto market.