South Korea’s leading cryptocurrency exchanges are actively addressing concerns over new regulations aimed at protecting investors, which could disrupt speculative trading of small digital assets.
These efforts come as the country prepares to implement new consumer protection legislation on July 19.
The Alliance of Digital Asset Exchanges announced that the exchanges will conduct a thorough review of altcoin listings to ensure compliance with upcoming provisions. This assessment will cover 1,333 tokens over a six-month period, with the goal of reassuring investors that mass delistings are not imminent.
In their statement, the alliance emphasized that future token listings will be carefully examined within the framework of the Digital Asset Consumer Protection Act once it is enacted.
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South Korea plays a significant role in the global crypto market, with the won surpassing the dollar as the most used currency for digital asset trading at one point this year. Approximately 10% of South Korea’s population invests in cryptocurrencies, with a majority preferring smaller tokens over Bitcoin.
Upbit, one of the top five exchanges globally, currently dominates the cryptocurrency trading landscape in South Korea. Together with its competitors, Upbit faces the challenge of increased costs associated with complying with the requirements of the new digital asset code. These exchanges are working to strike a balance between regulatory compliance and maintaining a stable trading environment for smaller digital assets.
