South Korea’s Digital Asset Exchange Alliance (DAXA) has published new guidelines in a move to re-assess over 1300 cryptocurrencies listed on domestic exchanges.
South Korean Investors Worried About Their Altcoins
This initiative goes into effect on 19 July 2024, in a bid to quell fears of mass delistings of digital assets across South Korean exchanges. A primary concern among domestic investors is the potential delisting of digital assets they have invested in
DAXA plans to put investor’s fears at rest by establishing standardized criteria and processes for transaction support reviews.
🚨 South Korea's new crypto law threatens to delist 600 altcoins. Will this regulation boost investor confidence or hinder market growth? What impact will this have on the global crypto industry? #Cryptocurrency #Regulationhttps://t.co/myBMDBrVVy
— Altcoin Wave (@AltcoinWave) June 19, 2024
While the new measures are being put in place with investor security in mind, it could lead to a narrower range of altcoins on offer for investors to choose from.
Altcoins currently account for over 60% of the crypto trading volume in South Korea.
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Development Of Guidelines Began In 2022
DAXA worked alongside 20 domestic crypto exchanges to develop the guidelines, which go by the name “Best Practices for Supporting Digital Asset Transactions.” The guidelines include a wide range of literature, covering transaction support review processes, termination procedures, and token information disclosure requirements. The ultimate goal of the guidelines is to foster a more secure and transparent digital asset market for South Korean investors.
These guidelines come after South Korea’s financial authorities spoke on the necessity for a self-regulatory framework within the cryptocurrency industry. Both the Financial Services Commission and the Financial Supervisory Service of South Korea had previously spoken out on the issue. This kick-started the birth of a specialised task force based around DAXA.
The best practices guidelines has been in the works for a number of years, starting back in October 2022. Feedback for the regulatory guidelines was taken from many sectors, including academia, legal experts and various stakeholders.
🇰🇷🔍 South Korea's new crypto law requires exchanges to review 600+ listed assets bi-annually starting July 19! Platforms like Upbit and Bithumb face stiff penalties if they fail to comply. How will this reshape the crypto landscape? #Crypto #SouthKorea #Regulation
— ₿itPrescript (@BitPrescript) June 18, 2024
South Korea’s top crypto exchanges by volume are Upbit and Bithumb, processing a combined $1.1 billion in trading volume over the past 24 hours, per CoinGecko.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
