Altcoins
South Korea’s new crypto law could wipe out 600 Altcoins if not respected
South Korea’s cryptocurrency market is poised for a big change as the country’s Financial Services Commission (FSC) prepares to implement strict rules under the new Consumer Protection Law. users of virtual assets.
These regulations could lead to around 600 altcoins being delisted from crypto exchanges if they do not meet FSC standards.
New law to affect 600 Altcoin
With the South Korea introduction Virtual Asset User Protection Act, regulatory control for approximately 600 altcoins listed on crypto exchanges. This law requires financial authorities to assess whether these digital assets should still be traded in the country.
This new law will come into force on July 19 with the Virtual Asset User Protection Act and will define the operation of these companies.
As part of the regulatory rollout, 29 exchange companies, including major players such as Upbit, Bithumb, Coinone, Korbit and Gopax, will receive clear rules on what they must do and how they must operate.
However, these exchanges are important for The crypto market in South Korea and they must follow the rules to protect investors and keep the market fair.
Penalties for violating the rules
Violating the new rules comes with harsh penalties, such as heavy fines and even prison sentences for those involved in illegal crypto activities. This shows that the government is serious about stopping scams and fraud in the crypto world and protecting investors.
How exchanges should follow the rules
Crypto exchanges will need to stick to stricter rules to list tokens and check the tokens they already have every six months to ensure they meet the new guidelines. The exchange must also conduct maintenance reviews every three months to keep everything compliant with the new rules.
If tokens appear risky or violate the rules, exchanges must warn people and may have to remove them from their listings.
What’s next for regulation
In addition to the law on the protection of users of virtual assets, the FSC also works about more rules for crypto trading on exchanges. These new rules could come into effect by July with the User Protection Act, ensuring that the government closely monitors cryptocurrency trading.
The FSC is even considering creating a special team solely responsible for monitoring virtual assets and making sure everything follows the rules.