South Korea to Strengthen Regulations on Token Exchanges, Including Blocking Hacked Tokens

South Korea’s New Regulations for Token Listing on Exchanges

South Korea is gearing up to implement stricter regulations for token listing on exchanges, with a focus on enhancing security measures and protecting investors.

Guidelines for Virtual Asset Trading Support

The country’s financial authorities are set to release comprehensive guidelines for virtual asset trading support. These guidelines are expected to be made public by the end of this month or early next month.

Preparation by Financial Supervisory Service

The Financial Supervisory Service has been diligently working on these listing guidelines since the second half of last year. Input has been gathered from exchanges like the Digital Asset Exchange Association (DAXA) to ensure a collaborative approach.

Focus on Security

One key aspect of the upcoming guidelines is the emphasis on security. Tokens that have been hacked or have unresolved security issues may face restrictions on listing on Centralized Exchanges (CEXs).

Delisting Standards

The guidelines also provide clarity on delisting standards. Projects that fail to meet disclosure obligations, such as discrepancies in distribution volumes, may be subject to delisting.

Impact on Overseas Assets

For overseas virtual assets to be listed, specific requirements must be met, including the availability of white papers or technical manuals for domestic use. Exceptions are made for assets traded on overseas exchanges for more than two years.

Political Landscape and Crypto

With the upcoming general election in South Korea, political parties are actively engaging with crypto investors. Both the People Power Party (PPP) and the Democratic Party (DP) have put forth policy proposals to institutionalize crypto-assets.