South Korean crypto exchanges are preparing to reassess more than 1,000 tokens they previously listed in response to the implementation of the Virtual Asset User Protection Act, aimed at safeguarding crypto investors’ rights and interests.
According to a statement from the Digital Asset Exchange Alliance (DAEX) on July 2, starting July 19, approximately 20 domestic crypto exchanges will embark on a six-month review of 1,333 tokens, aligning with recent recommendations from South Korean authorities.
The alliance highlighted that major domestic exchanges have already integrated crucial monitoring criteria, which should mitigate the likelihood of widespread delistings.
“While some assets have been removed from listings, the comprehensive re-evaluation process spanning six months aims to minimize the impact of mass delistings.”
Digital Asset Exchange Alliance
The Digital Asset Exchange Alliance emphasized that only disqualification criteria will be publicly disclosed, with other details kept confidential to prevent market misuse. As previously reported by crypto.news, the new regulations will impact nearly thirty registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. These exchanges will conduct initial reviews to decide on the continuation or delisting of each token.
Under the updated regulatory framework, crypto exchanges must establish review committees to assess factors such as the reliability of issuing entities, measures for user protection, technological and security standards, and adherence to regulations. Tokens issued by decentralized autonomous organizations (DAOs) may not meet standard requirements, while tokens traded normally for over two years in regulated markets like the U.S., U.K., France, Germany, Japan, Hong Kong, Singapore, India, and Australia will face a less rigorous review process. Additionally, crypto exchanges are prohibited from receiving payments for listing tokens.