South Koreas New Crypto Law Could Lead to Delisting of 600 Altcoins If Criteria Are Not Met
Key Points
– South Korea’s new legislation on cryptocurrencies might result in the removal of 600 altcoins that do not meet the required standards.
– Violating the new crypto regulations could lead to severe penalties, including hefty fines and imprisonment.
– The Financial Services Commission (FSC) is planning to introduce additional regulations and establish a dedicated team to oversee compliance with virtual asset laws.
South Korea is set to witness a significant transformation in its cryptocurrency market as the Financial Services Commission (FSC) gears up to enforce stringent regulations outlined in the Virtual Asset User Protection Act.
Under this new law, approximately 600 altcoins listed on crypto exchanges will undergo regulatory scrutiny to determine their eligibility for trading in the country. The Virtual Asset User Protection Act will officially come into effect on July 19, setting forth guidelines for the operations of these companies.
In preparation for the regulatory changes, 29 exchange firms, including major players like Upbit, Bithumb, Coinone, Korbit, and Gopax, will receive clear directives on compliance requirements. These exchanges play a crucial role in South Korea’s crypto market, and adherence to the rules is essential to safeguard investors and maintain market integrity.
Violating the regulations will result in severe consequences, with offenders facing substantial fines and potential imprisonment for engaging in illicit crypto activities. This underscores the government’s commitment to combatting scams and fraud in the crypto sphere while prioritizing investor protection.
Crypto exchanges will be required to adhere to stricter listing rules, conduct bi-annual assessments of existing tokens to ensure compliance with the new guidelines, and perform quarterly maintenance reviews to uphold regulatory standards. In cases where tokens pose risks or fail to meet requirements, exchanges must notify users and may be compelled to remove such tokens from their platforms.
Looking ahead, the FSC is actively developing additional regulations for crypto trading on exchanges, with plans for these rules to be implemented alongside the Virtual Asset User Protection Act in July. The establishment of a specialized team dedicated to monitoring virtual assets and ensuring regulatory compliance is also under consideration to strengthen oversight within the industry.