In this illustration, representations of the cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin are placed on a PC motherboard. REUTERS-Yonhap
Implementation of Korea's first cryptocurrency law on user protection to take effect on July 19
By Anna J. Park
With the implementation of Korea's first law on protecting users of virtual assets, scheduled for July 19, cryptocurrency exchanges will comprehensively review the listing status of more than 600 virtual assets currently trading.
According to the Financial Supervisory Service (FSS) and the virtual asset industry on Sunday, 29 cryptocurrency exchanges registered with financial authorities, including Upbit, Bithumb, Coinone, Korbit and Gopax, must periodically evaluate whether they continue to support the trading of their coins quoted. .
Each of the exchanges must establish its own evaluation and decision-making body within its organizations, and such bodies evaluate the trustworthiness of the issuer of its listed currencies, user protection measures, technology and security and compliance with the regulations.
In the case of assets such as Bitcoin, whose issuer is not specified, alternative review criteria will be introduced.
When cryptocurrency coins fail to meet certain standards, they will be designated as prudential and face delisting.
"Financial authorities will support cryptocurrency exchanges to conduct reviews of their listed currencies every six months to determine whether they continue to support virtual asset trading. After this initial review, exchanges will be required to conduct maintenance reviews every three months," said an official. financial authorities said.
Financial authorities are also preparing guidelines for virtual asset transactions, with the aim of them being used by virtual asset exchanges starting next month, when the virtual asset user protection law comes into force.
Figures from the Korean Financial Intelligence Unit of the Financial Services Commission (FSC) showed that the total number of cryptocurrency coins listed on domestic virtual asset exchanges was around 600 in the second half of last year, which represents approximately 3.5 percent. drop compared to the first half of last year.
Meanwhile, financial authorities are also preparing a change in their internal structures to design effective policies on the cryptocurrency industry.
The FSC plans to establish a new office dedicated exclusively to virtual assets to oversee the overall regulatory framework for the virtual asset industry later this month.
The FSC organizational amendment, which includes these details, will complete its legislative notice on Monday and will be reviewed by the cabinet meeting on Tuesday.
The FSS is also preparing to monitor and investigate unfair trading in the virtual asset sector in two new offices established late last year.
