The Financial Service Commission (FSC) of South Korea has issued a notice to 29 registered cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, instructing them to regularly assess the tokens listed on their platforms and decide whether to continue supporting their trading.
South Korea is preparing to enforce a law aimed at protecting users of virtual assets, as reported by The Korea Times. The new law, which is set to take effect by July 19, introduces severe criminal penalties and fines for any violations. This includes the possibility of a prison sentence exceeding one year or a fine ranging from three to five times the amount of illegal profits. In accordance with this law, all 29 registered crypto exchanges will need to conduct reviews of the over 600 crypto tokens listed on their platforms.
Under the new regulation, crypto exchanges will be required to adhere to stricter guidelines when listing tokens and review the existing listed tokens every six months to ensure compliance with the updated criteria. Following the initial review, exchanges must conduct maintenance reviews every three months.
Earlier in February, the South Korean government introduced an update to the Virtual Asset Users Protection Act. In April, the FSC hinted at implementing more stringent regulatory measures for listing new tokens on crypto exchanges. This could involve steps to enhance market monitoring and security, including a possible ban on tokens from projects with security vulnerabilities.
Furthermore, the FSC is working on developing additional guidelines for crypto transactions on exchanges, which may be implemented alongside the user protection law by July. Authorities are also restructuring their organizational frameworks to enhance policymaking for the cryptocurrency industry. The FSC plans to establish a specialized bureau dedicated to virtual assets and overseeing the industry’s regulatory framework. A proposal for this initiative will be presented on June 17 and reviewed by June 18.
In the midst of these developments, the magazine “Big Questions” ponders how Bitcoin payments can make a resurgence in the current landscape.