South Korea’s cryptocurrency market is in for a big change as the country’s Financial Services Commission (FSC) gets ready to implement strict rules under the new Virtual Asset User Protection Act.
These regulations could lead to the delisting of approximately 600 altcoins from crypto exchanges if they fail to meet the FSC’s standards.
New Law To Affect 600 Altcoin
With the introduction of South Korea’s Virtual Asset User Protection Act, regulatory scrutiny for approximately 600 altcoins listed on crypto exchanges. This law requires financial authorities to evaluate whether these digital assets should still be traded in the country.
This new law will come into effect on July 19 with the Virtual Asset User Protection Act and will lay out how these companies should operate.
As part of the regulatory rollout, 29 exchange companies, including major players such as Upbit, Bithumb, Coinone, Korbit, and Gopax, these exchanges will get clear rules on what they need to do and how they should operate.
However, these exchanges are important for South Korea’s crypto market and they must follow the rules to protect investors and keep the market fair.
Penalties for Breaking the Rules
Breaking the new rules comes with serious punishments, like big fines and even jail time for people involved in illegal crypto activities. This shows the government is serious about stopping scams and fraud in the crypto world and protecting investors.
How Exchanges Must Follow the Rules
Crypto exchanges will have to stick to stricter rules for listing tokens and check the tokens they already have every six months to make sure they meet the new guidelines. The exchange also needs to conduct maintenance reviews every three months to keep everything in line with the new rules.
If any tokens look risky or don’t follow the rules, exchanges have to warn people and might have to take those tokens off their lists.
What’s Next for Regulations
Besides the Virtual Asset User Protection Act, the FSC is also working on more rules for crypto trading on exchanges. These new rules could come into force by July along with the user protection law, making sure the government keeps a close watch on crypto trading.
The FSC is even thinking about making a special team just for keeping an eye on virtual assets and making sure everything’s following the rules.
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