In the wake of recent concerns regarding mass delistings on South Korean crypto exchanges, the Financial Supervisory Service (FSS) has stepped forward to clarify its role. While the new Virtual Asset User Protection Act mandates stricter token reviews, the FSS emphasizes its focus on setting listing standards, not directly dictating delistings.
Fears of Delistings Spook Investors
Rumors of potential delistings for up to 600 altcoins sent shivers down the spines of South Korean crypto investors. This stemmed from reports that the FSS instructed major exchanges like Upbit, Bithumb, and Gopax to re-evaluate listed tokens.
However, the FSS has distanced itself from directly influencing delisting decisions. They highlight their role in establishing stricter listing guidelines and collaborating with exchanges to develop best practices for token reviews. The ultimate responsibility for listing and delisting decisions rests with the individual exchanges and the Digital Asset eXchange Alliance (DAXA).
Stricter Compliance, Not Mass Delistings
The Virtual Asset User Protection Act signifies a shift towards tighter regulations in the South Korean crypto market. Exchanges will be required to conduct biannual assessments of listed tokens, focusing on factors like issuing entity reliability, user protection measures, and adherence to security standards. This enhanced scrutiny aims to foster a more secure and responsible crypto ecosystem.
FSS Expands Crypto Oversight
The FSS’s commitment to the evolving crypto landscape is further underlined by reports of a dedicated crypto regulation division being established. This new division will be tasked with developing policies, overseeing regulatory compliance, and shaping the framework for the future of crypto in South Korea.
Overall, this clarification by the FSS offers a sense of direction for both investors and crypto exchanges. While tighter compliance is on the horizon, the focus remains on fostering a healthy and secure digital asset market in South Korea.
