South Korean Crypto Tokens Plagued by the Specter of Mass Delisting

A number of digital currencies may face scrutiny and potential delisting in South Korea.

The Korea Times published on Sunday detailing that South Korean crypto exchanges are considering the future listing of approximately 600 cryptocurrencies.

Exchanges will engage their internal committees to decide which cryptocurrencies may be at risk of being delisted, during this reevaluation.

Decisions will be based on criteria such as the condition of the development team, security measures, and compliance with regulations.

Exchanges need to perform these reviews biannually as per the latest regulatory guidelines.

Regulation Asia reported earlier that South Korea’s Financial Services Commission (FSC) plans to create a specific division focused on virtual assets.

Additionally, the FSC has set out new rules for non-fungible tokens (NFTs) to promote regulatory transparency.

These regulatory updates happen alongside growing interest in crypto trading in South Korea, with U.Today reporting the Korean won outpacing the U.S. dollar in crypto trading volume in Q1 2024. The rise in popularity also reflects in local politicians appealing to the crypto electorate in recent parliamentary elections.

The unprecedented altcoin craze peaked on March 5 in South Korea, with Upbit, a leading crypto exchange, hitting $15 billion in daily trade volumes.

In the previous year, the Governor of the Bank of Korea, Rhee Chang-yong, mentioned the importance of implementing a central bank digital currency (CBDC) in response to the increasing interest in stablecoins.

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