Korean Financial Authorities Address Concerns Over Mass Crypto Delisting

CryptoNews.com

2024-06-18 02:23:35

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Hongji Feng

Last updated:

June 18, 2024 06:23 EDT | 1 min read

The Financial Supervisory Service (FSS) of Korea has addressed concerns about the rumored mass altcoin delistings, clarifying its limited involvement.

According to the latest report by EBN, the FSS stressed that it does not directly oversee the review of virtual asset listings. The financial authorities contributed to the listing standard but not the direct reviewing process.

Delisting Rumors Cause Panic Selling in South Korea

The new Virtual Asset User Protection Act, set to take effect in July, has triggered fears among investors. According to Daehan Kyungjae, regulators will begin reviewing transaction support for about 600 coins on virtual asset exchanges starting next month.

The Act, which will come into force on July 19, mandates that fiat KRW-trading platforms like Upbit, Bithumb, Coinone, Korbit, and Gopax adhere to its rules. As a result, investors have begun panic selling, driven by concerns that many altcoins may be delisted.

The report indicated that approximately 16 altcoins were rumored to be at risk of delisting from the won-based listing market by next June. This speculation led to a sharp decline in value, with about half of the coins listed on Upbit’s won market dropping by 10-20%.

FSS Not Directly Involved in Listing Reviews

The Virtual Asset Supervision Department of the FSS stated, “The content mentioned is auxiliary material submitted to the National Assembly when the Virtual Asset Law was legislated.”

“At that time, there was content in the National Assembly asking the Financial Supervisory Service to assist in establishing a unified listing standard for exchanges,” the authority added.

They continued, “The financial authorities inspect virtual asset operators, not directly conduct reviews of the products. There was a demand to assist when creating best practices, which we participated in, but the announcement will be made by the exchanges and DAXA.”

An official from a domestic won-based exchange mentioned that the trading support best practices are intended to integrate the review standards previously conducted by each exchange into a unified framework.

The official also suggested that the likelihood of mass delistings leading to consumer harm is minimal. They emphasized that the new practices are not expected to cause significant disruptions for investors.

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