Stricter Listing Regulations to Shape South Korea’s Crypto Exchanges

Published:

South Korea is set to implement stricter regulations for token listings on centralized cryptocurrency exchanges, marking a significant step in the country’s efforts to enhance oversight and security within the digital asset market. Scheduled for release by the end of April or early May, these new guidelines will introduce stringent measures aimed at preventing the listing of digital assets with unresolved security issues and ensuring greater transparency for foreign digital assets listed on domestic exchanges.

Key Features of the New Guidelines

  • Enhanced Scrutiny on Listings: Digital assets with a history of hacking incidents will face prohibition from being listed on domestic exchanges unless the cause of the breach is thoroughly investigated and resolved.
  • Requirement for Detailed Documentation: Foreign digital assets seeking listing on South Korean exchanges must now publish a white paper or technical manual specifically for the South Korean market, ensuring that local investors have access to comprehensive information about the asset.
  • Exemptions for Established Tokens: Tokens that have been listed on a licensed exchange for over two years may be exempt from some of the new requirements, acknowledging the established nature of these assets.
  • Mandatory Disclosure Compliance: Exchanges are required to delist cryptocurrencies if their issuers fail to provide adequate disclosure, such as accurate information on token circulation.

Strengthening the Digital Asset Ecosystem

These guidelines are part of South Korea’s broader regulatory efforts, including amendments to the Virtual Asset Users Protection Act introduced in February. The legislation introduces severe penalties for non-compliance, including imprisonment and hefty fines, in response to the Terraform Labs crisis that led to substantial financial losses in 2022.

Additionally, the Gyeonggi Provincial Tax Justice Department’s success in collecting non-declared taxes through a digital tracking system and the Financial Intelligence Unit’s increased monitoring of suspicious transactions underscore the government’s commitment to creating a safer and more transparent digital asset market.

Manjeet Mane
Manjeet Mane
Manjeet Mane, an accomplished developer in cryptocurrency and blockchain technology, has devoted years to advancing these fields. With a firm belief in their transformative power across industries, he specializes in full-stack development.

Related News

Recent