Regulation
South Korean Cryptocurrency Exchanges Start Token Review
A consortium of 20 South Korea cryptocurrency exchanges has launched a half-yearly review of 1,333 digital assets to address concerns about potential mass delistings under new regulations.
THE Digital Asset Exchange Alliance (DAXA) Announced this initiative on July 2, with the aim of mitigating the risk of sudden and widespread token delisting. This review process is mandated by South Korea’s new investor protection laws, which will go into effect on July 19.
Major platforms like Bithumb and Upbit must comply with these regulations, which will serve as a benchmark for future token listings. DAXA has worked with participating exchanges to establish best practices for review and eventual delisting. cryptocurrencies.
The alliance also plans to implement a more flexible “alternative screening plan” for tokens that have been traded on reputable foreign exchanges for more than two years. DAXA is currently identifying eligible foreign exchanges, including those recognized by the International Organization of Securities Commissions (IOSCO).
The Cryptocurrency Landscape in South Korea
The importance of the cryptocurrency market in South Korea is underlined by the Korean won Most traded fiat cryptocurrency pair status in Q1 2024, with $456 billion in trading volume, slightly surpassing the US dollar. Upbit, the country’s largest exchange, ranks among the top 20 globally by daily trading volume.
A recent survey finds that young South Koreans are increasingly turning to cryptocurrencies and stocks as retirement alternatives, with more than half of respondents aged 20 to 39. distrust the national pension systemIn particular, About 7% of election candidates own digital assetsaccording to their asset declarations.
The South Korean government is preparing to introduce stricter regulations for token listings, including measures to block hacked tokens. Financial authorities are expected to publish guidelines to support virtual asset trading by early next month.