In June last year, the Korean Congress passed the "Virtual Asset User Protection Act" and introduced a virtual asset supervision system. And on December 11 last year, the Financial Supervisory Commission (FSC) of South Korea proposed detailed rules based on the law, which are scheduled to take effect on July 19 this year. Reassessing the listing status of about 600 domestic cryptocurrencies. Now, according to Korean media reports yesterday (17th), in order to ensure compliance with the upcoming virtual asset user protection law, South Korea’s financial authorities plan to reassess about 600 cryptocurrencies traded on domestic exchanges. listing status. Tokens that do not meet the standards will be designated as warning trading tokens and then delisted. The 29 virtual asset exchanges that reported to the financial authorities, including Upbit, Bithumb, Coinone, Korbit, and Gopax, must undergo preliminary reviews to determine whether to maintain the listing of all tokens. A financial authority official said: We will allow virtual asset exchanges to review whether to maintain listing of virtual asset projects that have been trading for six months. Thereafter, maintenance reviews are conducted every three months. For virtual asset projects that do not meet the standards for maintaining listing, suspension of listing is inevitable. South Korea’s Cryptocurrency Listing Standards reported that South Korea’s virtual asset listing review and decision-making body is expected to review the following nine aspects:
Reliability of the issuing entity User protection measures Technology and security Compliance with laws and regulations The ability and social credit of relevant entities to issue, operate, and develop Important information disclosure: Require issuers to disclose important information related to virtual assets, including past operating history, the possibility of virtual asset holders participating in decision-making, and operational transparency , total issuance and circulation, appropriateness of virtual asset allocation, etc.
Possibility of conflict of interest and resolution measures: Possibility of conflict of interest with virtual asset holders, possibility of conflict of interest between exchanges and users, and whether there are resolution measures.
Security of ledgers and virtual assets, and check whether there are centralization risks Normal trading in eligible overseas markets for more than two years: For example, in the United States, United Kingdom, France, Germany, Japan, Hong Kong, Singapore, India and Australia, etc. In markets with well-established regulatory systems, screening requirements may be relaxed for virtual assets that have been traded normally for more than two years. This is because for some virtual assets issued by Decentralized Autonomous Organizations (DAO), it may be difficult to meet the above requirements because there is no clear issuer, so an alternative screening method was introduced. FSC statement: It does not directly review tokens. After the news was released yesterday, a list of "projects that may be delisted" circulated on Korean social media, mentioning 16 altcoins. Affected by this, the prices of about half of the cryptocurrencies on the Upbit Korean won market fell sharply by 10% to 20%. The report clarified that the FSC stated that these contents were additional information submitted to Congress when Congress enacted the virtual asset law. At that time, Congress requested the FSC to assist in formulating unified exchange listing standards. FSC emphasizes: We are inspecting virtual asset operators, rather than directly examining individual projects. We were asked to participate in developing the detailed rules, but the final release will be made by the exchange and the Korean Digital Asset Exchange Association (DAXA). The possibility of large-scale delisting is low. The exchange explained that this large-scale plunge was due to investors’ over-interpretation of the upcoming law, and predicted that the possibility of large-scale delisting was actually extremely low. An exchange official said that the detailed rules for listing have not yet been released, so it cannot be fully confirmed. She emphasized that this maintenance of listing review is not a new behavior, but a routine work that has been carried out all the time, and it is by no means sudden. He also said: The possibility of large-scale delisting and other situations that would cause damage to consumers is very low. As for the recently circulated list of expected delisting projects, he pointed out that such lists have been circulated many times in relevant communities in the past, mainly targeting "Kimchicoin" with concentrated domestic trading volume, but most of them are unfounded.
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