A coalition of 20 South Korean cryptocurrency exchanges has eased concerns regarding potential mass delistings of tokens under the country's new investor protection laws. The Digital Asset Exchange Alliance (DAXA) confirmed that exchanges, including industry leaders Bithumb and Upbit, will review 1,333 cryptocurrencies over the next six months.
Key Developments in South Korea’s Crypto Regulation
1. New Investor Protection Framework
Effective July 19, South Korea’s Virtual Asset User Protection Act mandates rigorous evaluations for all listed tokens. DAXA emphasized that new listings will adhere to stricter compliance standards, reducing the likelihood of abrupt, large-scale delistings.
2. Best Practices for Token Reviews
DAXA and member exchanges developed guidelines assessing:
- Issuer credibility
- User protection measures
- Regulatory compliance
Tokens traded for over two years in qualified overseas markets (e.g., jurisdictions under IOSCO governance) may undergo a streamlined review process. DAXA is finalizing a list of eligible international markets.
3. Market Impact and Global Position
South Korea remains a crypto hub, with the Korean won (KRW) leading Q1 2024 trading volumes (~$456B), slightly surpassing the **U.S. dollar ($455B)** (Kaico Research).
FAQs
❓ Will South Korea delist major cryptocurrencies like Bitcoin?
No. The review targets smaller, non-compliant tokens. Established assets (e.g., BTC, ETH) meet higher regulatory thresholds.
❓ How long will the token review process take?
Exchanges have six months to complete evaluations, ensuring phased adjustments rather than sudden removals.
❓ Which exchanges are part of DAXA?
The alliance includes Upbit, Bithumb, Coinone, and 17 others, covering ~99% of Korea’s crypto trading volume.
👉 Stay updated on global crypto regulations
For further insights, explore DAXA’s official statement.
(Note: External links unrelated to regulatory content have been removed for compliance.)
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