FSS, together with DAXA, is working to prepare appropriate guidelines for virtual asset listing. It also aims to ban the listing of tokens related to hacking incidents. Thus, financial regulators will take a more rigorous approach to listing tokens nationwide. South Korea’s efforts to protect users stand out as a very important move in the cryptocurrency world.
New rules are coming for listing cryptocurrencies on exchanges!
South Korea’s financial regulators have begun keeping a close eye on virtual assets across the country. Regulators have introduced a more rigorous approach to token listings on CEXs. This move by South Korean regulators comes amid evolving inconsistencies regarding cryptocurrency around the world. He also further emphasized the importance of drafting seamless regulations that oversee safe and protected user participation in this technology.
According to recent news, cryptocurrencies with a history of hacking incidents will receive a red card from local exchanges in South Korea unless the reason is fully disclosed to the authorities. On the other hand, offshore virtual assets will only be eligible to be listed on local CEXs if a whitpaper or technical guide is available for the Korean market.
A closer look at the new crypto approach
According to recent reports, the Financial Supervisory Service (FSS) has been continuously trying to develop listing guidelines for virtual asset exchanges in cooperation with organizations such as DAXA (Digital Asset Exchange Association) since the second half of the previous year. Meanwhile, DAXA has existing joint listing review guides. However, the Virtual Asset User Protection Act requires official standards to be established before it comes into force.
The enactment of the law also highlighted the need for a standard listing procedure for virtual asset exchanges. As a result, authorities are currently working to prepare comprehensive guidelines. For this purpose, it also consults the stock exchanges. In this regard, it stipulates that virtual assets involved in hacking or security incidents cannot be listed on local CEXs unless the cause is clarified or damages are compensated.
What is the reason for South Korea’s cryptocurrency move?
cryptokoin.comAs you follow from , there have been several hacking incidents since last year that blocked famous crypto projects such as Galaxia (GXA), Orbit Chain (ORC), Somesing (SSX) and Play Dapp (PLA). These emerged as a setback for the South Korean cryptocurrency space. Regulators attribute this to the lack of implementation of a new crypto regulatory policy.
Meanwhile, most of the tokens mentioned above failed to detect the reasons for the hack. Therefore, DAXA-affiliated exchanges removed it from their lists. On the other hand, Galaxia compensated for its losses through ‘buyback’. That’s why Galaxia stayed with Gopax, a cryptocurrency exchange platform from South Korea. Regarding this, South Korean regulators stated that the relisting would be blocked if the reasons for the hack were not resolved.
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