Regulation
South Korean Exchanges Vow to Protect Altcoin Trading Amid New Regulations, Here’s Everything
South Korea’s cryptocurrency market is gearing up for significant changes as new investor protection regulations are about to come into effect. The country, known for its vibrant altcoin trading scene, is set to implement the Virtual Asset User Protection Act on July 19. This upcoming regulation has sparked widespread discussion in the cryptocurrency community about its potential impact on digital asset trading.
South Korea holds a prominent position in the global cryptocurrency market, with the Korean won recently overtaking the US dollar as the most used currency for cryptocurrency trading. Around 10% of the country’s population is exposed to digital goodswith smaller coins making up the majority of exchanges, unlike market leader Bitcoin.
The response of trade to new regulations
In response to upcoming regulations, South Korea Cryptocurrency exchanges are taking proactive measures. The Digital Asset Exchange Alliance, an industry trade body, announced plans to review 1,333 altcoins over the next six months. This review aims to ensure compliance with the new law on the protection of virtual asset users and dismisses concerns that regulations could quickly stifle speculative trading in smaller digital assets.
The alliance said that immediate mass de-listings are “unlikely” due to the extended evaluation period. Additionally, all new token listings will be evaluated under the new law once it goes into effect. This measured approach suggests a gradual implementation of regulations rather than an abrupt market shift.
The new legislation was partly prompted by the 2022 Lunar Crash and EarthUSD tokens, created by the South Korean entrepreneur Make Knownwhich caused losses of over $40 billion. While the law aims to protect investors, it could increase operating costs for exchanges like Upbit, one of the world’s leading cryptocurrency trading platforms. This development illustrates the ongoing balance between protecting investors and maintaining South Korea’s vibrant cryptocurrency trading culture, particularly in altcoins.
Read also: Central Bank of The Bahamas Sets Two-Year Target for CBDC Integration
Legal Developments in the Korean Crypto Space
In a major legal development, the Seoul High Court has overturned an earlier ruling in a dispute involving the Fantom Foundationa leading blockchain platform. The court dismissed all of SikSin and Ahn’s claims against Fantom, reversing an earlier decision that awarded the plaintiffs more than 198 million FTM tokens.
The case centered on agreements to implement Fantom technology in the South Korean food industry. The High Court found that SikSin and Ahn failed to fulfill their contractual obligations, including integrating Fantom technology and producing a valid technical document for the Lachesis Protocol. The court also found evidence of plagiarism in the plaintiffs’ work.
Fantom CEO Michael Kong welcomed the decision, while the company’s legal team highlighted the complexity of the case. The ruling is expected to have an impact on how Blockchain-related disputes are handled in the South Korean legal system, especially those involving cross-industry applications and intellectual property issues. This sets a precedent for future cases in the rapidly evolving intersection of blockchain technology and traditional industries.
Read also: Coinbase Cites Binance Case for Interlocutory Appeal in SEC Case