CryptoNews Reports:
South Korean cryptocurrency exchanges are reportedly working to alleviate concerns over the country’s new digital asset law potentially leading to a widespread delisting of cryptocurrencies.
South Korea is set to implement its first Digital Assets User Protection Law on July 19.
The legislation will require cryptocurrency exchanges to review the listing status of their altcoins, assessing the reliability of coin issuers, user protection measures, and regulatory compliance.
According to a new report by Bloomberg, the country’s cryptocurrency exchanges are now pushing back against views that the Virtual Asset User Protection Act will impact a large number of coins and affect speculative trading of small digital assets.
Bloomberg cited the Digital Asset Trading Association, an industry trade group, stating that it is unlikely for crypto assets to face widespread delisting, as evaluations covering 1,333 coins will be conducted within six months, despite new tokens being evaluated under the backdrop of the new law once it takes effect.
Approximately 10% of South Korea’s population engages with tokens and smaller coins, which constitute a significant portion of the country’s trading activity.
The $40 billion collapse of Terraform Labs, the company behind TerraUSD and Luna tokens, and the nation’s preference for regulated and less volatile crypto investments, are said to be key driving factors behind the new legislation.
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