Fears of Mass Altcoin Delistings Spread in South Korea
Fears are growing that South Korean crypto exchanges will begin altcoin delisting this year at the request of the financial authorities.
Per a report from Business Post, there is a real danger that altcoins will be “delisted one after the other” in the coming weeks.
The media outlet reported that industry officials suspect a repeat of 2021. This was the year when most major domestic crypto exchanges purged scores of low-cap coins from their platforms.
In 2021, exchanges acted out of apparent anticipation of coming regulatory action. With a rise in public scandals surrounding so-called “scam coins,” regulators are under pressure to act again.
Officials have stated that they want exchanges to operate listing audits. They want exchanges to check the credentials of coin projects regularly.
Underperforming tokens, projects that lack sufficient transparency, and projects that show few signs of recent development should be placed on “cautionary” lists, officials insist.
Business Post claimed experts now “cannot rule out the possibility that many altcoins will be delisted at once,” in a repeat of 2021.
The regulatory Financial Supervisory Service (FSS) said it will present a set of “best practices” for exchanges to refer to when making delisting decisions.
The FSS reportedly wants to roll out its new guidelines for altcoins next month. It allegedly wants these to coincide with the launch of the Act on the Protection of Virtual Asset Users.
The act is slated to come into effect on July 19. An unnamed crypto industry official told the media outlet:
“It is my understanding that the financial authorities will announce their new guidelines before the act comes into force. I believe that they are preparing to implement the guidelines as
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