Crypto exchanges in South Korea are reportedly trying to dispel fears that the country’s new digital asset law could lead to a widespread delisting of cryptocurrencies.
South Korea will enforce its first digital asset user protection law on July 19th.
The legislation will require crypto exchanges to review their altcoin listings and assess the reliability of the coins’ issuers, user protection measures and compliance with regulations.
In a new report, Bloomberg says that the country’s crypto exchanges are now pushing back on the idea that the Virtual Asset User Protection law will impact a large number of coins and affect speculative trading of small digital assets.
Citing industry trade group Digital Asset Exchange Alliance, Bloomberg says the mass delisting of crypto assets is unlikely since the evaluation will span 1,333 coins over a period of six months albeit all-new token listings will be assessed in the context of the new law once it takes effect.
About 10% of South Korea’s population has exposure to tokens and smaller coins, which comprise a bulk of trading activities in the country.
The $40 billion crash of Terraform Labs, the crypto company behind TerraUSD and Luna tokens, and the nation’s appetite for risky and volatile crypto investments are said to be key drivers that gave rise to the new legislation.
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