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Cryptocurrency exchanges to value listed coins
In this illustration the representations of the cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on the PC motherboard. REUTERS-Yonhap
The implementation of Korea’s first cryptocurrency law on user protection will take effect from July 19th
By Anna J. Park
With the implementation of Korea’s first virtual asset user protection law scheduled for July 19, cryptocurrency exchanges are set to comprehensively review the listing status of more than 600 currently traded virtual assets.
According to the Financial Supervisory Service (FSS) and the virtual asset industry, 29 cryptocurrency exchanges registered with financial authorities, including Upbit, Bithumb, Coinone, Korbit and Gopax, must regularly evaluate whether to continue supporting the trading of their quoted coins. .
Each exchange is required to establish its own decision-making and evaluation body within its organisations, with these bodies evaluating the reliability of the issuer of the listed coins, user protection measures, technology and security and compliance of the regulations.
For assets such as Bitcoin, the issuer of which is not specified, alternative review criteria will be introduced.
When cryptocurrency coins do not meet certain standards, they will be designated as precautionary and will need to be delisted.
“Financial authorities will support cryptocurrency exchanges to conduct reviews on their listed coins every six months to assess whether to continue supporting virtual asset trading. After this initial review, exchanges will be required to conduct maintenance reviews every three months,” an official said. by the financial authorities he said.
Financial authorities are also preparing guidelines for virtual asset transactions, with the aim of having them used by virtual asset exchanges starting next month, when the Law on the Protection of Virtual Asset Users comes into force.
Data from the Korea Financial Intelligence Unit under the Financial Services Commission (FSC) showed that the total number of cryptocurrency coins listed on domestic virtual asset exchanges was around 600 in the second half of last year, or about 3.5% . decline compared to the first half of last year.
Meanwhile, financial authorities are also preparing a change in their internal structures to develop effective policies on the cryptocurrency sector.
The FSC plans to establish a new office dedicated exclusively to virtual assets to oversee the overall regulatory framework for the virtual asset sector as early as the end of this month.
The FSC organizational amendment, which includes these details, will complete its legislative communication by Monday and will be considered by the Cabinet meeting on Tuesday.
The FSS is also preparing for oversight and investigations into unfair trading in the virtual asset sector at two new offices established late last year.