Altcoins
South Korea could delist 600 altcoins under new law
South Korean financial authorities could delist around 600 altcoins this year under the new Virtual Asset User Protection Act, starting next month.
This move comes in response to the upcoming Virtual Asset User Protection Act, which goes into effect on July 19 and aims to improve regulatory compliance within the crypto sphere.
Recent reports from local media indicate that the South Korean government has finalized a rigorous framework called a best practices plan to support virtual asset transactions.
This plan outlines stringent criteria that cryptocurrencies must meet to remain listed on national exchanges. Unlike the current system where exchanges conduct their own reviews, the new approach requires authorities to set standards for all listed tokens.
The focal point of these rules lies in the list of projections. Exchanges will now reevaluate their support for each virtual asset every six months, followed by subsequent reviews every three months. Businesses that do not meet the prescribed standards risk suspension of transaction support.
The new criteria include nine key aspects, including listing eligibility, issuer reliability, user protection mechanisms, technological security and compliance with local laws.
Assurance checks will involve examining information disclosure and circulation practices, while user protection assessments will focus on monitoring blockchain activity and the accessibility of the white paper.
Technical security is also key, as cryptocurrencies must have a clean hacking record and transparent source codes for smart contracts. Tokens with redacted transaction history or issued directly by exchanges, among others, will face removal from the list.
Issuers must show full disclosure, robust issuance plans and credible business histories, with South Korean authorities reserving the right to challenge listings based on qualitative criteria, except for assets with a clean track record on well-established foreign exchanges. regulated.
Regulatory changes in South Korea could have a significant impact on the local crypto scene, particularly affecting altcoins with low trading volumes and problematic disclosures, given the country’s 29 domestic cryptocurrency exchanges like Upbit.
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