South Korean Cryptocurrency Exchanges Set Guidelines to Address Mass Delisting Fears

South Korean cryptocurrency exchanges that are part of the Digital Asset Exchange Association (DAXA) have released new guidelines to avoid mass delistings ahead of upcoming legislation aimed at curbing market manipulation.

These guidelines standardize the criteria for supporting and terminating digital asset trading on exchange platforms. Doctor “This is what we said in a statement released on Tuesday,” he said.

The alliance said it would review about 1,333 existing digital assets over a six-month period to ensure a systematic approach. DAXA, a consortium of major South Korean cryptocurrency exchanges, said it would work with financial authorities and experts to improve standards.

Greater transparency is expected to increase compliance and reduce the risk of assets being withdrawn from exchanges.

“Major domestic exchanges have been proactively implementing core best practice criteria since late 2023,” a rough Google translation of DAXA’s statement reads. “Therefore, it is unlikely that a large-scale delisting will occur at once.”

Specifically, the guidelines focus on transparency in information disclosure and prohibit fees for trading support, meaning exchanges must not charge any form of payment or take any bribes for listing tokens unless explicitly stated otherwise.

Key aspects include a comprehensive review criteria covering the issuer’s credibility, user protection measures, technical and security standards, and regulatory compliance.

The statement said exchanges must provide essential information, including a white paper and important notices from the issuer.

The bill comes ahead of the Virtual Asset User Protection Act, which is scheduled to take effect on July 19.

Enacted in response to the fallout from the FTX debacle, the law mandates stricter controls and standardized practices across exchanges to prevent market manipulation and protect investors.