South Korea will enforce a new law to protect virtual asset users starting July 19.
The Financial Service Commission (FSC), South Korea’s financial regulator, has directed 29 registered crypto exchanges—including Upbit, Bithumb, Coinone, Korbit, and Gopax—to regularly evaluate the tokens listed on their platforms and decide whether to continue supporting their trading.
South Korea to Implement Virtual Asset User Protection Law
According to The Korea Times, South Korea will begin enforcing the Virtual Asset User Protection Law on July 19. This law imposes strict penalties, including jail sentences of more than one year and fines three to five times the amount of illegal profits for violations. All 29 registered crypto exchanges in the country must review the more than 600 tokens currently listed on their platforms.
Stricter Review Guidelines for Token Listings
The new law requires crypto exchanges to adhere to stricter guidelines for listing new tokens and to review existing tokens every six months to ensure compliance with these guidelines. After the initial review, exchanges must conduct maintenance reviews every three months.
Government Updates and Future Implications
The South Korean government updated the Virtual Asset Users Protection Act in early February. By April, the FSC had already signaled its intention to implement stricter regulatory guidelines for listing new tokens on crypto exchanges.
Summary Review: The new law underscores South Korea’s commitment to safeguarding crypto investors and ensuring the integrity of the cryptocurrency market. This move is expected to enhance transparency and trust in the South Korean crypto ecosystem, benefiting both investors and the broader financial market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
