Two weeks ago, we wrote that South Korean crypto exchanges will have to adhere to new guidelines for listing crypto assets. It was expected that this would result in hundreds of assets being removed from the exchanges that did not meet the requirements.
Yesterday, however, South Korean exchanges announced new guidelines to prevent these mass delistings of digital assets. These guidelines were set by the Digital Asset Exchange Alliance (DAXA), a coalition of the country’s largest crypto exchanges.
The purpose of these guidelines is to increase transparency, better protect users, and ensure exchanges comply with the upcoming “Virtual Asset User Protection Act”.
What are the new guidelines?
The new “Virtual Asset User Protection Act,” which comes into effect on July 19, provides a legal framework for digital asset trading. The law requires crypto exchanges to provide greater transparency about their operations, take strict anti-money laundering measures, and implement robust security protocols to protect users’ assets.
A key aspect of the guidelines is the standardization of criteria for supporting or delisting digital assets. This is in response to concerns raised by South Korea’s financial watchdog about market manipulation and the need to protect investors. The measures are intended to ensure that asset delistings are fair and transparent, so that investors do not suddenly lose access to their assets. A total of 1,333 crypto assets will be evaluated in the coming months.
What are the implications for crypto assets?
DAXA’s new guidelines include specific procedures for evaluating digital assets. Exchanges must regularly review whether an asset meets standards for liquidity, stability, and legal compliance. If an asset does not meet these criteria, the exchange must follow a clear process for delisting.
The introduction of the new crypto law has led to fear and uncertainty, particularly due to fears that hundreds of crypto assets will disappear from South Korean exchanges. According to DAXA, however, these fears are exaggerated.
“Major domestic stock exchanges have been applying the most important criteria preventively since the end of 2023. This means that the chance of large-scale delistings, all taking place at the same time, is low.”
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Source: https://newsbit.nl/nieuwe-richtlijnen-zuid-koreaanse-cryptobeurzen-voorkomen-massale-verwijdering-van-crypto-assets/
