Key Points:
South Korean exchanges will review the 600 tokens listed after implementing the new virtual asset law next month.
Market panic over potential token delistings is causing a decline in altcoin values.
South Korean government states it is not directly involved in the token review process.
South Korean exchanges plan to inspect up to 600 tokens listed after the implementation of the Virtual Asset Act next month.
The exchanges intend to ensure that all tokens listed observe the new regulatory standards, promising transparency and security on the virtual asset market.
The virtual asset law to be introduced to be a major movement toward the tightening of regulations over the cryptocurrency industry in South Korea. This provides a mandate for the comprehensive scrutiny of tokens for the protection of investors and the maintenance of market integrity. This rigorous token review has, in turn, affected positive market sentiment as preparation for exchanges has visibly dropped the value of altcoins.
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South Korean Exchanges to Review 600 Tokens Under New Law
The news has caused panic among investors, which adds to the downward pressure the altcoin price is currently facing. Most investors are scared that some of the tokens might be delisted for not meeting new regulatory requirements, in which case they fear losing their money. This portrays a much greater anxiety within the crypto community regarding this change in regulations and its effects on digital assets.
The South Korean government claims it is not directly reviewing any tokens itself. According to the government, exchanges have been individually reviewing tokens to comply with the new legal framework. This distinction matters because it means the regulatory bodies are letting exchanges have discretion when following the law.
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