Regulation
South Korea’s new cryptocurrency law could remove 600 Altcoins if not enforced
South Korea’s cryptocurrency market is set to undergo a big change as the country’s Financial Services Commission (FSC) prepares to implement strict rules under the new Virtual Asset User Protection Act.
These regulations could lead to around 600 altcoins being delisted from cryptocurrency exchanges if they do not meet FSC standards.
New law that will affect 600 Altcoins
With the introduction of South Korea Virtual Asset User Protection Act, regulatory oversight for around 600 altcoins listed on cryptocurrency exchanges. This law requires financial authorities to evaluate whether these digital assets should still be traded in the country.
This new law will go into effect on July 19 with the Virtual Asset User Protection Act and will define how these companies should operate.
As part of the regulatory rollout, 29 exchange companies, including major players such as Upbit, Bithumb, Coinone, Korbit and Gopax, these exchanges will receive clear rules on what they must do and how they should operate.
However, these exchanges are important for South Korea’s cryptocurrency market and they must follow the rules to protect investors and keep the market fair.
Penalties for breaking the rules
Violating the new rules carries severe punishments, such as large fines and even prison time for people involved in illegal crypto activities. This shows that the government is serious about stopping scams and frauds in the cryptocurrency world and protecting investors.
How exchanges must follow the rules
Cryptocurrency exchanges will have to adhere to stricter rules for listing tokens and check the tokens they already own every six months to ensure they meet the new guidelines. The exchange must also conduct maintenance reviews every three months to keep everything in line with the new rules.
If some tokens seem risky or don’t follow the rules, exchanges need to warn people and may have to remove those tokens from their lists.
What is the future of regulation
In addition to the Virtual Asset User Protection Act, the FSC is also working about more rules for trading cryptocurrencies on exchanges. These new rules could come into force by July alongside the User Protection Law, ensuring that the government keeps a close watch on cryptocurrency trading.
The FSC is even thinking of creating a special team just to keep an eye on virtual assets and make sure everything follows the rules.
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