Attention: 600 Cryptocurrencies in South Korea Are in Danger of ‘Delist’!

South Korea’s cryptocurrency market is facing a wave of sweeping regulation. Starting in July, approximately 600 crypto assets will be valued according to the new standards, and those that do not comply may go to delist. Here are the details…

Critical development for crypto currencies in South Korea

According to local news sources, financial regulators will announce optimal implementation plans for crypto asset process enforcement with the New Crypto Asset User Protection Law coming into force on July 19. This means that cryptocurrency exchanges such as Upbit, Bithumb, Coinone, Korbit and Gopax must conduct initial reviews and determine which assets will continue to be listed. An official from the financial authorities said:

We will allow crypto-asset exchanges to evaluate whether they will continue to support processing for crypto-asset items that have been processed for six months. Thereafter, quarterly maintenance inspections will be conducted. For crypto asset items that do not meet the process basis standards, the process basis will inevitably be suspended.

What will be looked at during the review process?

Authorities also determined the parameters of the investigation process. Exchanges will evaluate the reliability of issuers, user protection measures, technical security, legal compliance and more. Entities that do not meet the requirements will face suspension of process reinforcement. However, there is an alternative screening method for assets that do not meet the typical criteria, such as Bitcoin and DAO-issued coins. Crypto assets that have been trading in properly regulated overseas markets for more than two years may see some more tolerance.

South Korea’s latest move comes after some global exchanges such as Crypto.com and Binance faced regulatory hurdles in gaining a strong foothold in the country. Critics argued that ‘cryptocurrency isolation’ by financial authorities helped create a monopoly on domestic exchanges and prevent users from transacting at lower prices. According to CoinGecko’s analysis, the leading domestic exchange Dunamu has a 65% market share. The second largest exchange, Bithumb, has a share of almost 30%. This regulatory change could reshape South Korea’s cryptocurrency market, affecting both domestic exchanges and the fate of countless crypto assets.

29 exchanges will begin the review process

As a result, the South Korean regulator Financial Services Board (FHK) issued regular assessment notices to 29 registered cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, whether they should continue to maintain their listed tokens and process reinforcement. According to a report published in the Korea Times newspaper, South Korea is preparing to implement the crypto asset user protection law, which will come into force until July 19.

The new law imposes heavy prison sentences and fines for violations. This carries a fixed prison sentence of more than one year or a fine of three to five times the price of the illegal profit. According to the new law, all 29 registered cryptocurrency exchanges must review 600 cryptocurrencies listed on them.