Korean Crypto Exchanges to Avoid ‘Mass Delistings’ Despite New Rules
Local trading platforms likely dispel “mass delistings” or withdrawals of tokens re-reviewing 1,333 tokens over the period of next six months announces the crypto association of South Korea
New Regulatory Framework Implementation
South Korean crypto exchanges are the ones who are going to reassess the status of their tokens that they listed in the near future after the execution of The Virtual Asset User Protection Act. The goal of this act that has been put into effect is to assure the safety of the traders and giving the protections to the investors. New technology driven markets may be risky without proper regulation.
DAEX Statement on Re-Evaluation
On July 2, Digital Asset Exchange Alliance (DAEX) released a statement on behalf of five major crypto exchanges that announced that 20 domestic exchanges will be entering a review period of six months, which is likely to zero fees beginning July 19. This massive assessment on Decentralized exchanges is a result of the recent suggestions by the Korean government.
Minimal Impact Expected
The alliance pledged that the main domestic exchanges had already safeguarded the trading by installing the main observation criteria so the possibility of mass delisted tokens is very low.
“Some assets may have unused or unused accordingly, but the revaluation of approximately 1,333 assets in the next six months decreases the possibility of mass delistings”, DAEX.
Confidentiality of Disqualification Criteria
The alliance suggested that the only disqualification criteria will be made public so that the market would not be abused. The authorities prefer to really hit those operators from exchange markets that are not fulfilling their needs Companies will embark on a preliminary process review to weigh and expand each asset in the market.
Review Committee and Evaluation Factors
Newly crypto exchanges Lok at the new regulatory sandbox laws, which foresees establishment of a review committee. This committee will assess the following factors:
- Issuer dependability
- Customer protection measures
- Technology and security standards
- Agent compliance
Reserved tokens of decentralized autonomous organizations (DAOs) not being able to be in compliance is one of them. On the other hand, tokens being normally traded over two years on the stock market in any of the following countries: the US, the UK, France, Germany, Japan, Hong Kong, Singapore, India, and Australia will be subjected to less strict review processes. Furthermore, the exchanges will not be allowed to issue tokens in exchange for any payments.
Conclusion
A seismic change is forthcoming in the South Korean crypto market with the Virtual Asset User Protection Act. One of the methods of regulation is a strict and long review time that digital asset exchange alliances say is not likely to lead to a mass number of delistings, as the markets are already being regulated very heavily. The proposal provides for improving confidence in both the investors and the market in the booming Korean crypto market.
