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Crypto Tokens Risk Delisting Nightmare in South Korea
Alex Dovbnja
Some cryptocurrencies may be in trouble in South Korea
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According to a Sunday relationship According to the Korea Times, South Korean cryptocurrency exchanges are ready to reevaluate the listing status of around 600 cryptocurrencies.
As part of the reassessment process, exchanges should instruct their internal decision-making bodies to determine which digital assets could potentially be subject to delisting.
Potential delisting decisions will be made based on factors such as the status of the developer team behind the token, the level of security and regulatory compliance.
These reassessments will have to be conducted every six months, according to the new requirements.
Earlier this week, Asia Regulation reported that the Financial Services Commission (FSC), the South Korean government’s main financial regulator, is on track to create a dedicated cryptocurrency division.
The FSC has also issued new guidelines for non-fungible tokens to ensure regulatory clarity.
The recent developments come amid growing interest in cryptocurrency trading in South Korea. HOW reported by U.Todayin the first quarter of 2024, the Korean won managed to surpass the US dollar in terms of total cryptocurrency trading volume. Meanwhile, local politicians from different parties were busy pandering to cryptocurrency voters during the recent parliamentary elections.
During the peak of the South Korean altcoin frenzy that took place on March 5, the daily trading volume of Upbit, the leading local cryptocurrency exchange, increased to $15 billion.
Last year, Bank of Korea Governor Rhee Chang-yong also highlighted the need to introduce a central bank digital currency (CBDC) amid the growing popularity of stablecoins.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.