Reports indicate that crypto exchanges in South Korea are working to alleviate concerns surrounding the potential delisting of cryptocurrencies due to the country’s upcoming digital asset law. Scheduled to take effect on July 19th, this new legislation will mandate that crypto exchanges review their altcoin listings to evaluate issuer reliability, user protection measures, and compliance with regulations.
In a recent update from Bloomberg, South Korean crypto exchanges are pushing back against the notion that the Virtual Asset User Protection law will have a significant impact on a large number of coins and speculative trading of smaller digital assets. The Digital Asset Exchange Alliance, an industry trade group, suggests that while the evaluation will cover 1,333 coins over six months, the mass delisting of crypto assets is unlikely. However, all-new token listings will be subject to assessment under the new law once it comes into effect.
Roughly 10% of South Korea’s population has exposure to tokens and smaller coins, which make up a significant portion of trading activities in the country. The recent $40 billion crash of Terraform Labs, the company behind TerraUSD and Luna tokens, along with the nation’s appetite for risky and volatile crypto investments, are believed to be driving forces behind the introduction of this new legislation.
To stay informed on the latest developments, make sure to subscribe for email alerts directly to your inbox. For more updates, follow us on X, Facebook, and Telegram. Remember to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets, as all transfers and trades are carried out at your own risk. The Daily Hodl does not offer investment advice or endorse the buying or selling of any cryptocurrencies or digital assets. Please be aware that The Daily Hodl participates in affiliate marketing.
