South Korea will implement its first crypto law on user protection on July 19. As a result, South Korea's financial authority has notified nearly 30 registered exchanges to review the more than 600 cryptocurrencies listed on them. Under the new law, companies that do not comply could face severe criminal penalties.
crypto Exchanges Required to Review Asset Listing
The Korea Times reported on Sunday that registered exchanges must thoroughly review the listing status of their listed crypto assets. Hundreds of cryptocurrencies are currently traded on the 29 exchanges operating in South Korea.
Figures from the Korean Financial Intelligence Unit (FIU) showed that more than 600 tokens were listed on crypto exchanges in South Korea during the second half of 2023. The report from the FIU, under the Financial Services Commission ( FSC), highlighted that this figure represented a drop of 3.5%. compared to the first half of 2023.
The Financial Supervisory Service (FSS) revealed that all exchanges registered with the financial regulator must evaluate whether the cryptocurrencies they list meet the watchdog's criteria.
An official from financial authorities said exchanges are required to review their listed tokens every six months and conduct “maintenance reviews” every three months. During this process, platforms, including Upbit, Bithumb, Coinine and Korbit, must decide if they can continue to support trading of the analyzed crypto asset.
<img decoding="async" class="size-large wp-image-305985 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/New-South-Korean-Crypto-Law-Will-Overhaul-600-Listed-Assets.png" alt="crypto” width=”759″ height=”123″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/06/New-South-Korean-Crypto-Law-Will-Overhaul-600-Listed-Assets.png 759w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-17-a-las-1.48.12-p.-m.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-17-a-las-1.48.12-p.-m.png?w=750 750w” sizes=”(max-width: 759px) 100vw, 759px” data-recalc-dims=”1″/>
Statement from an FSS officer about the new requirement. Source: The Korea Times
As part of the new law, exchanges are needed to create an evaluation and decision-making department within each company. The department must evaluate the trustworthiness of the token issuers.
In addition, they must determine whether the issuers comply with user protection measures, technological and security standards, and their regulatory compliance. Tokens that do not meet the required criteria will be labeled as “cautionary” assets and face delisting.
According to the report, alternative criteria will be specified in the case of cryptocurrencies such as bitcoin, in which “the issuer is not specified.”
South Korean authorities prepare for new legislation
In February, South Korea's financial authorities announced that its Virtual Asset User Protection Law would go into effect on July 19. Korea's first Cryptocurrency Law aims to protect users' assets and prevent “unfair business practices” in the country. Additionally, the new law seeks to give financial regulators the power to supervise the industry.
As Bitcoinist reported, crypto companies must ensure the security of users and safeguard their funds. Violation of the new legislation could result in criminal charges or fines for business operators. Virtual asset companies could be fined three to five times the unfair profit, while criminal charges could result in one year in prison.
According to The Korea Times report, financial authorities are “preparing a change in their internal structures to design policies on the crypto industry.” The FSS is preparing to monitor and investigate unfair trading in virtual assets in its two new offices.
Similarly, the FSC plans to establish a new office by the end of the month. The office will exclusively oversee regulatory regulations of the virtual asset industry. structure.
<img loading="lazy" decoding="async" class="size-large wp-image-305982 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/1718716074_717_New-South-Korean-Crypto-Law-Will-Overhaul-600-Listed-Assets.png" alt="btc, BTCUSDT, crypto, bitcoin” width=”980″ height=”551″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSDT_2024-06-17_13-35-53.png?w=1008 1008w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSDT_2024-06-17_13-35-53.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSDT_2024-06-17_13-35-53.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/06/1718716074_717_New-South-Korean-Crypto-Law-Will-Overhaul-600-Listed-Assets.png 980w, https://bitcoinist.com/wp-content/uploads/2024/06/BTCUSDT_2024-06-17_13-35-53.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px” data-recalc-dims=”1″/>
bitcoin (btc) is trading at $66,330 in the three-day chart. Source: BTCUSDT on x/ZEFb38gs/" target="_blank" rel="noopener nofollow">TradingView
Featured image from Unsplash.com, chart from TradingView.com
