Exchanges Required to Review Assets
South Korea’s new crypto law, effective July 19, requires registered exchanges to review the status of over 600 listed cryptocurrencies. Exchanges must assess if the listed tokens meet criteria related to issuer reliability, user protection, technology, and regulatory compliance.
Consequences of Non-Compliance
Exchanges that fail to comply with the new law face severe criminal penalties, including fines and imprisonment.
Alternative Criteria for Bitcoin
For cryptocurrencies like Bitcoin, where no specific issuer is identified, alternative criteria will be specified.
South Korean Authorities Preparing for New Legislation
Financial authorities are preparing for the implementation of the new law, which aims to protect user assets and prevent unfair trading practices. New bureaus will be established to supervise and investigate the industry.
Enforcement of the Law
Violation of the new law could result in criminal charges or fines for business operators. Virtual asset companies could face fines up to five times the unfair profit, and individuals could face imprisonment for up to one year.
