- The South Korean cryptocurrency sector is gearing up to implement new conduct rules for local companies.
- These regulations, formed by representatives from 20 crypto exchanges and related entities, will be enforced starting July 19.
- An important aspect of these new rules is the enhanced protection framework for cryptocurrency investors in South Korea.
South Korea’s stricter guidelines for cryptocurrency exchanges aim to bolster investor confidence and ensure market integrity.
Introduction of New Conduct Rules in South Korea’s Crypto Market
In a significant policy shift, South Korea is introducing new conduct guidelines for its cryptocurrency sector. Enforced by 20 crypto exchanges and industry representatives, these rules are scheduled to take effect on July 19. The primary objective is to enhance investor protection through a robust legal framework.
Scrutiny Over Existing Crypto Projects
As part of the new regulations, over 1,300 cryptocurrency projects, currently traded on South Korean platforms, will undergo reevaluation. The exchanges have a six-month period to conduct this review. According to the Digital Asset Exchanges Alliance (DAXA), future token listings will need to comply with both formal and qualitative criteria.
Criteria for Token Listings
The token listing criteria will include several checkpoints such as the credibility of the issuer, security measures, legal compliance, and efforts made to protect investors. Tokens failing to meet any of these conditions will not make it to the platform.
Formation of an Independent Review Committee
In alignment with the new regulations, cryptocurrency platforms will establish an independent committee to evaluate decisions related to token listings. This committee will document its decision-making process, and the records will need to be archived for a minimum of 15 years.
Conclusion
The newly implemented conduct rules aim to create a more reliable environment for cryptocurrency trading in South Korea. By carefully evaluating existing and new tokens, as well as forming an independent review committee, the sector hopes to enhance investor confidence and overall market stability.
