Potential Delisting! Crypto Assets in South Korea Face Strict Evaluation

Bittime – Starting July 19, new rules for protecting crypto asset users in South Korea will be officially implemented. This has an impact on crypto exchanges in the country which must carry out a thorough evaluation of the more than 600 crypto assets currently being traded.

According to the Financial Services Authority (FSS) and South Korean crypto asset industry players on Sunday, as many as 29 registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, are required to carry out regular evaluations of the crypto assets they list.

Rigorous Evaluation in South Korea

Each crypto exchange is required to establish an internal evaluation and decision-making body. This body will assess various aspects, such as:

• Trustworthiness of the crypto asset issuer: Who created the crypto asset and what is their credibility?
• User protection: Does the crypto exchange have adequate measures to protect users from fraud and financial loss?
• Technology and security: Is the technology underlying the crypto asset safe and reliable?
• Regulatory compliance: Does the crypto asset comply with applicable regulations in South Korea?

For crypto assets such as Bitcoin that do not have a clear issuer, alternative evaluation criteria are applied. Crypto assets that do not meet certain standards will be given a warning status and potentially removed from exchange listings.

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Support from Authorities

"Financial authorities will support crypto exchanges to carry out evaluations of their listing crypto assets every six months," said an official from the FSS. "After this initial evaluation, the stock exchange is required to carry out a follow-up evaluation every three months."

Financial authorities are also preparing guidelines for crypto asset transactions, which will begin to be used by crypto exchanges starting next month, in line with the implementation of the crypto asset user protection law.

Potential Reduction of Crypto Assets in South Korea

Data from South Korea's Financial Intelligence Unit under the Financial Services Commission (FSS) shows that the total crypto assets listed on domestic crypto asset exchanges reached around 600 in the second half of last year.

This number decreased by around 3.5 percent compared to the first half of last year. This decline likely occurred due to strict initial evaluations from crypto exchanges.

Increased Oversight

The financial authority is also preparing internal structural changes to make policies related to the crypto asset industry more effective.

The Financial Services Commission (FSS) plans to form a new bureau specifically dealing with crypto assets. This bureau will start operating no later than the end of this month.

This move aims to strengthen the overall regulatory framework for the crypto asset industry in South Korea.

Apart from that, the FSS is also strengthening supervision and investigation of unfair trading practices in the crypto asset sector through two new bureaus that were established at the end of last year.

Also Read: South Korea Bans Crypto ETFs Even Though US Gives Permission

The Impact of South Korea's New Policy on the Global Crypto Asset Market

South Korea's new policy regarding the evaluation of crypto assets by crypto exchanges could have a widespread impact, not only in South Korea but also globally.

1. Increased Industry Standards

With strict evaluation criteria implemented in South Korea, this could encourage crypto exchanges in other countries to raise their listing standards. This has the potential to increase transparency and security across the global crypto asset industry.

2. Impact on Crypto Asset Prices

Delisting crypto assets that do not meet standards in South Korea could have an impact on reducing the price of these assets globally. Investors may become more wary of crypto assets that lack clear regulations or adequate user protection.

3. Opportunities for Reputable Crypto Assets

This new policy could be an advantage for crypto assets that have a good reputation and comply with regulations. These crypto assets may become increasingly popular with investors who are looking for safe and reliable investments.

4. Innovation and Technology Development

This new policy can encourage innovation and technological development in the crypto asset industry. Crypto asset developers will probably focus more on creating assets that meet strict regulatory and security standards.

Also Read How To Buy Crypto:

Factors that Influence the Impact of Crypto Policy 

However, it should be noted that the long-term impact of South Korea's new policies remains uncertain. Some factors that may influence the impact of this policy include:

1. Attitude of Regulators in Other Countries

If other countries follow South Korea's steps and implement strict regulations on crypto assets, the impact will be more significant globally. However, if other countries take a looser approach, the impact may be limited to South Korea.

2. Adoption of Blockchain Technology

As the adoption of blockchain technology becomes more widespread, strict regulation of crypto assets may become increasingly difficult to implement. Blockchain technology enables peer-to-peer trading of crypto assets, making it difficult for regulators to track and supervise.

Also Read: South Korea Delays Approval for Crypto.com to Enter South Korean Crypto Market

Conclusion

This new policy in South Korea shows a trend of increasing supervision of crypto assets. Thorough evaluation and strict criteria have the potential to reduce the number of crypto assets traded on South Korean exchanges.

However, it is hoped that this will increase trust and security for crypto asset investors in the country.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely through Bittime. Bittime is one of Indonesia's best crypto applications, officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Also, please make sure that you have enough balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.