Unconfirmed rumors of removal spark panic
South Korea’s cryptocurrency market has experienced major turmoil in anticipation of the Virtual Asset User Protection Act (Virtual Assets Act) set to take effect next month. Prices of many digital assets have fallen sharply amid rumors that several altcoins may be delisted.
(South Korea is expected to establish a "Virtual Assets Section" by the end of June to protect user assets. Civil servants are not allowed to hold virtual assets)
Quarterly reviews and investor panic
Starting next month, financial authorities plan to conduct quarterly reviews of 600 domestic digital assets. Coins that don’t meet certain standards could face trading halts, triggering widespread panic selling among investors.
In fact, the Hong Kong Securities and Futures Commission also has such a review of listed digital assets. However, since South Korea is currently a key market for cryptocurrency, it is expected to have a wider impact.
(Don’t want to lose to South Korea! South Korea Financial Commission: There are as many as 6.45 million crypto asset users, and 70% of investments are less than US$800)
(Hong Kong crypto regulation goes live on 6/1: Exchanges have a heavy responsibility to protect retail investors and are temporarily not allowed to buy or sell stablecoins)
Impact on altcoin prices
According to South Korean media reports, online rumors are circulating about 16 altcoins that may be delisted in June. These speculations caused about half of the coins listed on Upbit to fall by 10-20% in price.
Description of listing inspection standards
Listing inspection requirements are divided into two categories: formal and quality.
Format checks focus on the reliability of the issuing entity, user protection mechanisms, technical security and legal compliance. Quality checks consider total circulation and circulation plans as well as changes to business plans.
Financial Supervisory Commission clarifies its role
The Financial Supervisory Authority’s Virtual Asset Supervision Service clarified that the financial authority is not directly involved in the inspection of virtual asset transactions. The Bureau submitted relevant details to Congress when the virtual assets law was enacted. The Financial Supervisory Authority supports the establishment of uniform listing standards for exchanges but does not directly inspect individual targets.
Overreaction to new legislation
Cryptocurrency exchanges attributed the market plunge to investors’ overreaction ahead of the law’s implementation. An exchange operator mentioned that the new standards are not significantly different from the previous ones, saying that the possibility of large-scale delisting is low.
The recent delisting rumors are not the first. Such rumors usually revolve around "pickle coins" with high trading volumes. They have appeared frequently in the past, but are usually unfounded.
Financial Supervisory Commission calls for prudent investment
The Financial Supervisory Commission urged investors to exercise caution, noting that many altcoin investors lack a full understanding of their investments. A Financial Supervisory Commission official emphasized the principle of investment responsibility and warned investors to be aware of the risks.
This article: Altcoins across the board due to South Korea’s new law? The panic caused by the delisting of Kimchi Coin collapsed, and the Korea Financial Supervisory Commission denied it. The post appeared first on Chain News ABMedia.
