South Korea Set to Strengthen Cryptocurrency Exchange Listings with Upcoming Guidelines: Report
New guidelines imposing stricter regulations on token listings on centralized cryptocurrency exchanges will be issued by South Korea’s financial authorities, news agency News1 reported.
The report states that tokens issued by projects that have been hacked but whose security issues have not yet been resolved may not be listed on local exchanges according to the guidelines.
The report also states that the domestic financial services commission could mandate foreign token projects to develop specific white papers for local markets in order to be listed on domestic exchanges. However, tokens that have already been listed on licensed exchanges for more than two years may not need to meet these new criteria.
Additionally, the guidelines may require exchanges to delist cryptocurrencies if the issuer fails to adequately disclose required information, such as if the actual circulating volume does not match the disclosed amount. The government plans to announce new guidelines as early as the end of this month, and is collecting opinions through local exchanges, the report added.
The Financial Services Commission, the main regulator overseeing the country’s financial sector, did not respond to The Block’s request for comment.
South Korea has one of the most active cryptocurrency markets in the world. Upbit, Korea’s largest cryptocurrency exchange, processed more than $221 billion in spot trading volume in March, equivalent to nearly 9% of global spot trading volume, according to data from The Block.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.
