If South Korea’s New Crypto Law Does Not Pass, 600 Altcoins Could Be Delisted
South Korea’s New Crypto Law
A significant shift is about to occur in South Korea’s cryptocurrency sector as the Financial Services Commission (FSC) of the nation prepares to impose stringent regulations under the recently passed Virtual Asset User Protection Act.
If these restrictions are not followed, about 600 altcoins may be removed from cryptocurrency exchanges if they don’t match the FSC’s requirements.
The New Law Will Impact 600 Altcoins
The Virtual Asset User Protection Act of South Korea has brought governmental scrutiny to the roughly 600 altcoins that are listed on cryptocurrency exchanges. According to this regulation, financial regulators must determine if trading in these digital assets is still appropriate in the nation.
The Virtual Asset User Protection Act, which will go into effect on July 19, will provide guidelines for how these businesses must conduct themselves 29 In the course of the regulatory deployment, Exchange companies—including big names like Upbit, Bithumb, Coinone, Korbit, and Gopax—will receive detailed guidelines on what they must do and how to conduct business.
To safeguard investors and maintain a fair market, these exchanges—which are crucial to South Korea’s cryptocurrency industry—must abide by the regulations.
The Repercussions of Breaking the Rules
Serious penalties, including as large fines and even jail time for anyone engaged in illicit cryptocurrency activities, are imposed for breaking the new regulations. This demonstrates the government’s commitment to safeguarding investors and putting an end to scams and fraud in the cryptocurrency space.
How Rules Must Be Followed by Exchanges
Token listings on cryptocurrency exchanges will be subject to more stringent regulations, and every six months, they will need to verify that the tokens they currently possess still comply with the new standards. To ensure that everything complies with the new regulations, the exchange must also perform maintenance reviews every three months.
Exchanges are required to alert users and may have to remove tokens from their lists if they appear dangerous or don’t comply with regulations.
What Happens to Regulations Next?
Along with the Virtual Asset User Protection Act, additional regulations for cryptocurrency trading on exchanges are being developed by the FSC. In order to ensure that the government keeps a careful eye, these new regulations may go into effect by July together with the user protection law on trading cryptocurrencies.
The FSC is even considering forming a dedicated team to monitor virtual assets and ensure that all regulations are being followed.
SOURCE : Coinpedia