South Korea Set to Enforce Strict Crypto Listing Rules, Hundreds of Altcoins Face Delisting

Twitter icon  •  Published 3 weeks ago  •  Nikolas Sargeant

South Korean crypto exchanges may delist hundreds of altcoins while rigorously reviewing listed cryptocurrencies for transparency, risks under new act effective July 19.

According to local media reports, regulators will initially examine around 600 altcoins traded across 29 exchanges, including major platforms like Upbit, Bithumb, Coinone, Korbit, and Gopax. Exchanges will have a six-month grace period to conduct initial reviews, after which they must perform quarterly assessments and delist any tokens deemed risky or non-compliant.

Each exchange must establish a dedicated listing and delisting unit to evaluate the security, reliability, and regulatory compliance of listed cryptocurrencies. These teams will scrutinize various aspects, including issuance and distribution volumes, information disclosure practices, and potential risks.

Alternative Screening Criteria for Decentralized Projects

While truly decentralized projects like Bitcoin and decentralized autonomous organizations (DAOs) may be subject to alternative screening requirements, regulators are likely to exempt well-established tokens like Ethereum and XRP from extensive reviews. Cryptocurrencies that have been traded for over two years on strictly regulated markets, such as those in the United States, United Kingdom, France, Germany, Japan, Hong Kong, Singapore, India, and Australia, are also expected to receive preferential treatment.

The new rules aim to address past controversies surrounding "cash-for-listings" scandals and the alleged manipulation of low-cap "kimchi coins" on South Korean exchanges. Exchanges that accept assets in exchange for listing support could face severe penalties under the upcoming regulations.

Several major domestic exchanges have already taken proactive measures, purging scores of low-cap altcoins from their platforms in anticipation of the regulatory changes, which have been in the works for several years.

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Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.