Crypto News:
Author: Jesse Coghlan, CoinTelegraph; Translation: Wu Zhu
A coalition of 20 South Korean cryptocurrency exchanges has alleviated concerns that new digital asset regulations in the country would immediately force them to delist a large number of tokens.
In a statement on July 2nd, the Digital Asset Exchange Association (DAXA) stated that as part of the new Cryptocurrency User Protection Act, these exchanges will collectively review a total of 1,333 cryptocurrencies over the next six months, implying that “massive delistings are unlikely to occur immediately.”
As part of South Korea’s new investor protection law, effective July 19th, exchanges in the country, including major platforms like Bithumb and Upbit, must review cryptocurrencies listed on their platforms. DAXA noted that all newly listed tokens will be assessed according to the Virtual Asset User Protection Act.
The industry body indicated it collaborated with 20 exchanges to develop best practice guidelines on how to review and discontinue support for cryptocurrencies. These guidelines outline the evaluation of token issues concerning reliability, user protection, and regulatory compliance.
Excerpt from DAXA’s statement on token issues guidelines. Source: DAXA
DAXA stated that a more lenient “alternative screening scheme” will apply to cryptocurrencies traded for over two years on “qualifying, well-regulated overseas virtual asset markets.” It added that it is researching and consulting with exchanges to formulate 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 participant in the global crypto market, with the South Korean won being the largest fiat currency pair by trading volume in Q1 of this year, totaling $456 billion, slightly exceeding the $455 billion in USD trading volume.
According to CoinGecko, Upbit remains the largest exchange in the country, currently ranked among the top 20 by daily trading volume, with $889.3 million traded on its platform in the past 24 hours