- South Korea’s 20 crypto exchanges, including Bithumb and Upbit, will evaluate 1,333 tokens in the next six months.
- The reviews are part of new investor protection laws effective July 19, aiming to avoid sudden mass delistings.
- The Digital Asset Exchange Alliance announced guidelines for token evaluations focusing on user safety and regulatory adherence.
Twenty South Korean cryptocurrency exchanges have committed to a systematic review of over 1,300 tokens following the implementation of new digital asset regulations, quelling concerns about potential widespread delistings.
These evaluations are a response to upcoming investor protection laws, scheduled to take effect on July 19. This comprehensive approach is designed to safeguard investors and align with national regulatory expectations.
The Digital Asset Exchange Alliance (DAXA), which includes major platforms such as Bithumb and Upbit, has outlined a strategy to assess each cryptocurrency’s viability, user protection measures, and compliance with regulations. This process is crucial for maintaining a fair and secure trading environment.
Establishing Robust Review Mechanisms
DAXA has introduced a set of best practices for exchanges to follow when deciding to continue or cease support for various cryptocurrencies. These guidelines emphasize the importance of assessing the reliability of token issuers and ensuring they meet stringent user protection standards.
For long-standing cryptocurrencies that have been actively traded for more than two years in regulated international markets, DAXA plans to apply a more lenient review process. These markets must meet the criteria set by the International Organization of Securities Commissions (IOSCO).
Strategic Consultations and International Compliance
Ongoing consultations among exchanges and research efforts are aimed at identifying which international markets qualify for this alternative screening process. This initiative reflects South Korea’s proactive stance in adapting to the evolving global cryptocurrency landscape.
This systematic approach by South Korean exchanges not only aims to protect domestic investors but also ensures that the country’s financial markets remain competitive and compliant with international standards.
