HomeNewsSouth Korea tightens crypto rules, 600 assets are up for review!

South Korea tightens crypto rules, 600 assets are up for review!

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  • South Korean exchanges will revalue 600 digital assets to comply with new regulations.
  • A new law enforces best practices and regular reviews to protect crypto investors.

Cryptocurrency exchanges in South Korea are preparing to re-evaluate nearly 600 listed digital assets in response to new regulatory requirements. Failure to meet these requirements will result in a trading warning and possible delisting of the asset, according to local media Chosun.

This extensive re-evaluation process is part of South Korea’s pledge to ensure that virtual assets listed on its 29 cryptocurrency exchanges comply with the upcoming Virtual Asset User Protection Act, which will go into effect on July 19, mirroring earlier reporting by ETHNews.

South Korea: Introduction of best practices

A local report has indicated that with the passing of this law, Korean authorities would formally introduce best practices for cryptocurrency exchanges doing business there.

One identified official emphasized the need to maintain a high standard of conduct in the cryptocurrency industry when expressing the intention to routinely value listed digital assets.

“After six months of trading, we will let virtual asset exchanges decide whether they will continue to provide virtual asset trading support.”

After that, the official said, maintenance reviews will be conducted every three months.

Temporary halt for non-compliant assets

The official also reiterated South Korea’s intention to temporarily halt support for virtual asset transactions that do not meet the required criteria. This move is intended to protect investors and make only safe and compliant digital assets available for trading.

The review process will take into account a number of elements, as the report lists. These include the reputation of the issuer, tools to protect users, security protocols and compliance with relevant regulations.

In addition, cryptocurrency exchanges will review how the virtual assets are distributed, whether there are conflicts of interest and how secure the blockchains on which the assets are stored are.

A different approach to revaluation is used for virtual assets produced by a decentralized autonomous organization (DAO) or without a central issuing authority such as Bitcoin. This ensures that all types of digital assets are carefully valued regardless of their issuance model.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: [email protected] Phone: +49 160 92211628