South Korea's leading crypto exchanges are trying to dispel the notion that new rules to protect investors could quickly cripple some of the country's speculative trading in smaller digital assets.
South Korean Crypto Exchanges Want to Allay Delist Fears
According to the Digital Asset Exchange Alliance, an industry trade body, platforms will review such altcoin listings to ensure their compliance with user protection legislation that will come into force on July 19.
The organization said in a statement today that the evaluation will cover 1,333 coins over the next six months, so immediate “mass delistings are unlikely.”
The group added that going forward, all new token listings will be considered in the context of the Virtual Asset User Protection law when it comes into force.
South Koreans are such a mainstay of the crypto market that at one point this year, the won replaced the dollar as the currency most used to trade in and out of digital assets.
Approximately 10% of the population invests in tokens, and the majority of trading is in smaller coins, not market leader Bitcoin.
Crypto prices fell slightly two weeks ago as investors weighed a report suggesting that South Korean exchanges would be forced to reduce holdings of tokens under new rules, highlighting the sensitivity of the issue for speculators.
Crypto trading in South Korea is dominated by Upbit, which has been ranked among the top five exchanges worldwide at times. Upbit and its rivals face the threat of higher costs in meeting the requirements of the digital asset code.
*This is not investment advice.
