A group of 20 South Korean cryptocurrency exchanges has alleviated concerns that the country’s new digital asset rules would lead to an immediate delisting of a large number of tokens.
In a statement on July 2, the Digital Asset Exchange Association (DAXA) said that as part of the new cryptocurrency user protection law, the exchanges will collectively review a total of 1,333 cryptocurrencies over the next six months, meaning a “massive delisting is unlikely to occur immediately.”
As part of South Korea’s new investor protection law, which took effect on July 19, exchanges in the country, including the largest ones like Bithumb and Upbit, are required to review the cryptocurrencies listed on their platforms.
DAXA stated that after the new rules are implemented, all newly listed tokens will be assessed according to the Virtual Asset User Protection Law.
The industry organization said it has collaborated with 20 exchanges to develop best practice guidelines to guide them on how to review and terminate support for cryptocurrencies.
The guidelines outline how to assess the reliability of token issuers, user protection, and regulatory compliance issues.
DAXA also stated that a more lenient “alternative screening plan” will apply to cryptocurrencies that have been trading on “qualified, fully regulated overseas virtual asset markets” for over two years.
It added that it is conducting research and consultations with exchanges to develop a specific list of qualified overseas markets, which will include members of the International Organization of Securities Commissions (IOSCO) board.
South Korea is a major player in the global crypto market, with the South Korean Won being the largest fiat currency pair by trading volume in the first quarter of this year, with a trading volume of $456 billion, slightly higher than the $455 billion in USD trading volume.
According to CoinGecko, Upbit is the largest exchange in the country, currently ranking in the top 20 by daily trading volume, with a trading volume of $8.893 billion on its platform in the past 24 hours.
