A consortium of 20 South Korean crypto exchanges reassured the public that the country’s new digital asset regulations would not lead to a mass delisting of tokens. Over the next six months, these exchanges will collectively review 1,333 cryptocurrencies in compliance with new investor protection laws set to take effect on July 19. The Digital Asset Exchange Alliance (DAXA) stated on July 2 that the likelihood of a simultaneous mass delisting event is low. As part of the regulations, all new token listings will be evaluated under the Protection of Virtual Asset Users Act, with DAXA and the exchanges collaborating on best practices for reviewing and discontinuing support for cryptocurrencies.
DAXA announced a more lenient “alternative screening plan” for cryptocurrencies traded for over two years in “eligible overseas virtual asset markets with sufficient regulation.” They are currently researching and consulting with exchanges to compile a list of these markets, which will likely include those recognized by the International Organization of Securities Commissions (IOSCO).
South Korea emerges as a major force in global cryptocurrency markets. In the first quarter of the year, its currency, the won, led as the most traded fiat currency, surpassing the U.S. dollar with a trading volume of $456 billion on exchanges.
Upbit, the country’s largest exchange, ranks among the top 20 exchanges by daily volume, with $889.3 million traded on its platform in the last 24 hours, as reported by CoinGecko.