logo logo
collapse-close-icon collapse-close-icon

Korean Exchanges Set to Reevaluate Over 600 Listed Virtual Assets

South Korean cryptocurrency exchanges are set to reevaluate more than 600 digital assets, and those failing this process will ultimately be delisted. Once the process is completed, crypto exchanges will be required to conduct maintenance reviews quarterly. The reputation of the issuers and user protection tools are among the factors related to virtual assets that will be reviewed.

Implementation of the Virtual Asset User Protection Act

South Korean cryptocurrency exchanges are reportedly set to reevaluate about 600 listed digital assets. Assets failing to meet the required standards will be issued a trading caution before being delisted. The reevaluation process is intended to ensure virtual assets listed on South Korea’s 29 crypto exchanges adhere to the Virtual Asset User Protection Act. South Korea is set to implement the law on July 19.

According to a local report, implementation of the law will see Korean authorities formally introduce best practices that crypto exchanges operating in the country must follow. The report quotes an unnamed official who disclosed plans to review listed digital assets 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.

Alternative Reevaluation Methods for Decentralized Virtual Assets

The official also reiterated South Korea’s plan to temporarily halt transaction support for virtual assets not meeting the required standards.

According to the report, factors set for review include the issuer’s standing, user protection tools, security, and compliance with relevant laws. Crypto exchanges will also evaluate the distribution of virtual assets, potential conflicts of interest, and the security of the assets’ respective blockchains.

However, for virtual assets without a centralized issuing entity, such as bitcoin, or those issued by a decentralized autonomous organization (DAO), an alternative reevaluation method will be applied, the report stated.

What are your thoughts on this story? Share your opinions in the comments section below.