Seoul, Korea, Thursday, July 4, 2024 – A consortium of 20 South Korean cryptocurrency exchanges has moved to calm fears of widespread token delistings amid new digital asset regulations.
They will review 1,333 cryptocurrencies over six months as part of the new user protection laws.
The Digital Asset Exchange Alliance (DAXA) stated on July 2 that this review aims to prevent sudden delistings.
“Twenty domestic virtual asset exchanges and DAXA have established “Virtual Asset Trading Support Best Practices” to be applied commonly among exchanges as part of self-regulation to establish a sound market order and protect users,” the statement said.
“The best practices include virtual asset trading support review and termination, trading support review procedures, information disclosure, etc., and are scheduled to be implemented at each exchange starting Friday, July 19 in line with the enforcement date of the “Act on Protection of Virtual Asset Users, etc.” However, for virtual assets that are already being supported for trading at the time of enforcement, the review will be conducted for six months from the enforcement date,” it said.
The statement in PDF and Korean can be reached here. https://kdaxa.org/support/press.php?boardid=news&mode=view&idx=53&sk&sw&offset&category
The mandatory review, required by the Protection of Virtual Asset Users Act, involves major exchanges like Bithumb and Upbit.
DAXA said it had developed best practice guidelines with the exchanges and will apply an “alternative screening plan” to well-established cryptocurrencies on regulated overseas markets.
South Korea’s significant role in the global crypto market is highlighted by the South Korean won being the most traded fiat currency in Q1, with Upbit ranking among the top 20 exchanges globally.
