- A new piece of digital asset legislation in South Korea is poised to bring significant changes to the crypto landscape.
- The country’s inaugural law on virtual asset user protection is set to be implemented on July 19th, marking a pivotal moment for the industry.
- “Financial authorities will assist cryptocurrency exchanges in conducting bi-annual reviews of listed coins to determine their trading viability,” a South Korean financial regulator stated to The Korea Times.
South Korea’s new crypto legislation is set to revolutionize the industry, introducing stringent regulations and a dedicated oversight body, with the aim of enhancing investor protection and market stability.
Major Shift in South Korea’s Crypto Regulatory Framework
South Korea’s new legislation mandates that all cryptocurrency exchanges establish internal units to evaluate the reliability of the digital assets they list. This move is expected to instill greater confidence and security within the rapidly evolving crypto market.
Exchanges to Undergo Rigorous Coin Evaluation Process
The law will necessitate crypto exchanges to conduct thorough evaluations of their listed coins every six months. These evaluations are designed to ensure that only trustworthy and sustainable digital assets are available for trading. Furthermore, exchanges will have to perform maintenance reviews every three months, fostering an environment of continuous oversight and responsibility.
Broader Implications and Industry Feedback
With over 600 crypto assets currently being traded in the country as per The Korea Times, the new regulation will have a widespread impact. The financial authorities have committed to working closely with exchanges throughout the year to facilitate these reviews.
Introduction of a New Governance Body
In a bid to further streamline and bolster the regulatory landscape, South Korea’s Financial Services Commission (FSC) is set to establish a new bureau solely focused on digital assets. This bureau will play a crucial role in monitoring and guiding the crypto activities within the country, ensuring adherence to the newly established guidelines and fostering a secure trading environment.
Conclusion
The forthcoming digital asset legislation in South Korea represents a notable stride towards heightened investor protection and market stability. With rigorous evaluation processes and the introduction of a dedicated regulatory body, the country is paving the way for a more secure and transparent crypto ecosystem.
