South Korea's FSC Urges Crypto Exchanges for Intensified Token Evaluation Ahead of New Regulation Enforcement
Summary:
South Korea's Financial Service Commission (FSC) has instructed 29 registered cryptocurrency exchanges to periodically evaluate and decide the trading support for their listed tokens. The country is set to enforce a virtual asset user protection law, which imposes severe penalties including substantial fines or jail time for violations. The law will require all 29 registered exchanges to reassess the legitimacy of the 600 crypto tokens listed on them. The FSC is also developing new regulatory guidelines for crypto transactions and planning to establish a new bureau dedicated solely to managing the regulatory framework of the virtual assets industry.
The regulatory authority of South Korea, the Financial Service Commission (FSC), has urged 29 registered cryptocurrency exchanges, which includes prominent ones like Upbit, Bithumb, Coinone, Korbit, and Gopax, to periodically evaluate the tokens listed and decide on their trading support. South Korea is on the verge of effectuating the protection law specific to virtual asset users as reported in The Korean Times. With a proposed date of coming into play by July 19, this law puts forth stringent penalties and fines for any breaches, targeting a jail time of over a year or a fine that is three to five times the sum of unlawful gains. It becomes mandatory for all 29 registered cryptocurrency exchanges to reassess the legitimacy of the 600 crypto tokens listed on them under this fresh mandate. The law necessitates these exchanges to adhere to stricter protocols while reviewing listings of tokens, and to also reevaluate every six months the tokens that are already listed to see if they fit into the new regulatory frame. Post the preliminary review, the exchanges are expected to conduct follow-up audits every quarter. Earlier this year, during February, the South Korean government made amendments to the Virtual Asset Users Protection Act. An expectation of tighter governance regarding the listing of new tokens on crypto exchanges was hinted by the FSC in April. It was then suggested by the commission that steps towards enhancing the market's vigilance and security be taken. This could involve blacklisting the tokens originating from compromised projects. The new protocols might preclude tokens that come from projects which have had security breaches and issues unresolved from being listed on local exchanges. The FSC, as highlighted in the report, is also in the process of creating fresh regulatory protocols regarding cryptocurrency transactions applicable to crypto exchanges, due to be enforced within the next month along with the user protection law. Appropriate changes are being made by the financial regulators to their organization structure to facilitate efficient policy-making pertaining to the cryptocurrency sector. It is planned by the FSC to form a new agency that will be dedicated solely to virtual assets and will have the responsibility of controlling the entire regulatory structure of the industry. This proposition is set to be put before the concerned authorities on June 17 and is expected to be reviewed by June 18.
Published At
6/17/2024 12:30:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.