South Korea is tightening its grip on the crypto market. A new law, set to take effect on July 19th, will require crypto exchanges to evaluate the reliability of their listed assets.
Mass Delisting Risk
Over 600 crypto assets are currently traded in South Korea. The new law will force exchanges to conduct six-monthly reviews to determine if they should continue supporting each asset. If an asset fails the review, it could be delisted.
Regulatory Oversight
The Korean Financial Services Commission (FSC) is also establishing a new bureau dedicated to overseeing digital assets. This bureau will work with exchanges to ensure compliance with the new regulations.
Transaction Guidelines
In addition, the FSC is developing guidelines for crypto transactions. These guidelines are expected to be finalized and implemented in July.
Impact on the Market
The new regulations are expected to have a significant impact on the South Korean crypto market. Exchanges may delist hundreds of assets, reducing the variety of options available to investors. The FSC’s oversight will also increase scrutiny on crypto transactions.
Implications for Investors
Investors should be aware of the potential delistings and increased regulation in the South Korean crypto market. They should carefully consider the risks associated with investing in crypto assets and conduct thorough research before making any decisions.
