South Koreas cryptocurrency authority dismisses possibility of widespread token removals amidst implementation of new legislation

A consortium of 20 crypto exchanges from South Korea has reassured investors that the implementation of the country’s new digital asset regulations will not lead to a mass delisting of tokens. In accordance with the new investor protection laws, these exchanges will conduct a review of 1,333 cryptocurrencies over the next six months. However, the Digital Asset Exchange Alliance (DAXA) has stated that the likelihood of a sudden mass delisting is low. The exchanges will evaluate all new token listings based on the Protection of Virtual Asset Users Act, which was introduced alongside the new regulations. DAXA, in collaboration with the 20 exchanges, has developed a set of best practices guidelines for reviewing and discontinuing support for cryptocurrencies. Additionally, a more lenient screening plan will be applied to cryptocurrencies that have been traded for over two years in overseas virtual asset markets with sufficient regulation. DAXA is currently researching and consulting with exchanges to compile a specific list of eligible overseas markets, which will include those recognized by the International Organization of Securities Commissions (IOSCO). South Korea is a major player in the global cryptocurrency markets, with the won being the most traded fiat currency in the first quarter of this year, surpassing the trading volume of the US dollar. Upbit, the largest exchange in the country, ranks among the top 20 exchanges in terms of daily trading volume.