Regulatory Review of Cryptocurrency Listings in South Korea
South Korea’s financial authorities are set to re-evaluate over 600 cryptocurrency listings on domestic trading platforms next month as part of new regulatory measures. The Virtual Asset User Protection Act will be enforced starting Jul. 19, with nearly three dozen registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, conducting initial reviews to determine the fate of each token.
Evaluation Criteria for Crypto Listings in South Korea
Under the new regulatory framework, crypto exchanges in South Korea must establish a review committee to assess factors such as the reliability of the issuing entity, user protection measures, technology and security standards, regulatory compliance, and more. Tokens issued by decentralized autonomous organizations (DAOs) may face challenges meeting standard requirements, while tokens with a trading history in regulated markets may undergo a less strict review process.
Ongoing Review Process and Potential Delisting
Ongoing quarterly reviews will categorize tokens as “problematic” if they do not meet requirements, potentially leading to cautionary designations or delisting. Crypto exchanges will have six months to evaluate existing listings and will undergo maintenance reviews every three months moving forward. Additionally, crypto exchanges will be prohibited from accepting payments for listings, emphasizing a transparent and compliant marketplace.
