South Korean media reported that the upcoming implementation of the Virtual Asset User Protection Act (Virtual Asset Law) has led to a wave of panic selling in the cryptocurrency market.
According to local media, the law, which will be implemented next month, has led to rumors that some altcoins will potentially be delisted, causing prices to drop.
The panic selling was triggered by news that financial authorities will review 600 domestic virtual assets every three months, starting next month. Trading of coins that do not meet listing standards will be suspended. This news sparked a flurry of 'panic selling', with investors shedding assets out of fear, according to analysts.
Today, 16 altcoins were identified as 'stocks with KRW listing and delisting potential in June' on various social media platforms, including coin communities. As a result, nearly half of the coins listed on the KRW market saw their prices drop by 10% to 20%.
However, the South Korean government has clarified that it is not directly involved in examining virtual asset transactions. The Virtual Asset Supervision Bureau of the Financial Supervisory Service stated that the relevant information was supplementary material submitted to the National Assembly when the Virtual Asset Law came into force. The National Assembly had requested the Financial Supervisory Service to support the establishment of unified listing standards for stock exchanges.
The Bureau added that they participate in the creation of good practices, but announcements will be made by the stock exchange and DAXA. They emphasized that financial authorities supervise virtual asset operators and do not directly examine stocks.
*This is not investment advice.