South Korea is taking a big step towards regulating its cryptocurrency market.
Starting July 19th, all 29 domestic exchanges, including giants like Upbit, will begin a detailed review of over 600 cryptocurrencies currently available for trading.
Why so serious?
The goal of the review is to ensure all listed cryptocurrencies meet stricter standards, what means replacing the current system, where individual exchanges decide what coins to list, with a unified and transparent review process.
The government has also finalized a plan outlining strict requirements for listing crypto on domestic exchanges.
Authorities will be looking at nine key areas, including whether the coin is suitable for trading, who issued it, how it protects users, and its technology’s security.
They’ll also check the issuer’s honesty and the coin’s trading history.
If they don’t like you, it’s over
Cryptocurrencies with hacking incidents, hidden transaction records, or violations of South Korean laws will be automatically delisted, and as experts highlights, meeting basic requirements might not be enough.
Authorities are considering additional checks, including questions about the issuer’s business practices and how the coin is used.
Even if a coin meets all the rules, it could still be delisted if officials find something suspicious, but of course, exceptions might be made for well-established coins with a clean record on reputable overseas exchanges.
Purge
This review could impact South Korea’s crypto market big time, because over 60% of trading volume comes from altcoins.
As of our current knowledge, coins with low trading activity and poor transparency are likely to be the first to go.
Ultimately, the new regulations want to create a safer and more trustworthy environment for cryptocurrency users in South Korea, and while this might lead to a smaller number of available coins, it could also bring more stability and security to the market.
