South Korean cryptocurrency exchanges are preparing to reevaluate more than 600 digital assets. Those that do not meet the necessary standards will ultimately be delisted. Once this extensive reevaluation is complete, crypto exchanges will be required to conduct maintenance reviews on a quarterly basis. Key factors under review will include the reputation of the issuers and user protection tools, among others.
According to the report, factors set for review include:
- The issuer’s standing
- User protection tools
- Security
- Compliance with relevant laws
- Distribution of virtual assets
- Potential conflicts of interest
- Security of the assets’ respective blockchains
The reevaluation process aims to ensure that virtual assets listed on South Korea’s 29 crypto exchanges comply with the Virtual Asset User Protection Act, set to be implemented on July 19. According to a local report, this law will introduce best practices that must be adhered to by crypto exchanges operating in the country. An unnamed official stated that listed digital assets will be reviewed regularly.
“We will allow virtual asset exchanges to review whether to maintain trading support for virtual asset items that have been trading for six months. After that, maintenance reviews will be conducted once every three months,” the unidentified official said.
For decentralized virtual assets, such as Bitcoin or those issued by a decentralized autonomous organization (DAO), different reevaluation methods will be applied. The official emphasized South Korea’s plan to temporarily stop transaction support for virtual assets not meeting the required standards.
Disclaimer: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.