Altcoins
Inspection of 600 tokens in South Korea sparks panic at Altcoin
South Korean media reported that exchanges will inspect 600 listed tokens after the implementation of the Virtual Assets Law which takes effect next month. This led to panic and a significant drop in altcoin prices. THE South Korean The government has clarified that it is not directly involved in the review process, in a bid to reassure the public.
In anticipation of the implementation of Virtual Asset User Protection Act (Virtual Asset Act) next month, the prices of dozens of virtual assets fell due to unfounded “delisting” rumors linked to altcoins. The law aims to provide a structured framework for virtual asset transactions and protect users, but has inadvertently sparked fears among investors.
Upcoming Virtual Assets Law, Quarterly Reviews and Investor Panic
Investors panicked and sold their virtual assets en masse after financial authorities announced plans to review 600 virtual assets. cryptocurrencies quarterly starting next month. According to industry sources, on June 18, rumors quickly circulated across social media and coin communities regarding potential delistings, leading to significant price drops for many altcoins.
On the Upstream debit exchange About half of the coins traded for the Korean won alone saw a decline of between 10 and 20 percent. The upcoming inspection will assess whether coins meet “best practice transaction support” listing standards, with problematic cryptocurrencies likely to be delisted, stoking investor fears.
The review criteria cover both formal and qualitative requirements. Formal aspects include issuer credibility, user protection, technological security and regulatory compliance. Qualitative factors look at total supply, distribution plans, and any changes to the business plan. However, financial authorities have stressed that they are not directly involved in conducting the reviews themselves.
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Clarifications from financial authorities and market reactions
The Financial Monitoring Service clarified that the information in question were additional documents submitted to the National Assembly during the adoption of the law on virtual assets. The National Assembly has asked the Financial Supervisory Service to help establish unified listing standards for cryptocurrency exchanges.
Financial authorities supervise virtual asset operators but do not directly examine individuals tokens. They helped create best practices, but emphasized that any announcements will come from exchanges and the Digital Asset eXchange Alliance (DAXA).
Stock exchanges explained that the recent massive drop in prices was due to an overreaction by investors before the law was implemented. They said mass delistings are unlikely, noting that unfounded lists of potential delistings often circulate in affected communities, particularly for “Kimchi Coins” with high domestic trading volumes.
The Financial Monitoring Service urged investors to be aware of the risks as many altcoin investors lack proper information about their investments. An official stressed the importance of responsible investment, warning that investors should consider the risk factors and sustainability of their investments.
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