Implementation of Korea’s first cryptocurrency act on consumer safety to take impact from July 19
By Anna J. Park
With the implementation of Korea’s first regulation on digital asset consumer safety, due to happen on July 19, cryptocurrency exchanges are set to comprehensively overview the itemizing standing of over 600 digital property at present being traded.
In accordance to the Monetary Supervisory Service (FSS) and the digital asset trade on Sunday, 29 cryptocurrency exchanges registered to the monetary authorities, together with Upbit, Bithumb, Coinone, Korbit and Gopax, should repeatedly evaluate whether or not to proceed supporting the buying and selling of their listed coins.
The exchanges are every required to arrange their very own analysis and decision-making physique inside their organizations, with the stated our bodies assessing the reliability of the issuer of their listed coins, consumer safety measures, know-how and safety and compliance with rules.
With regards to property like Bitcoin, of which the issuer isn’t specified, different overview standards will probably be launched.
When cryptocurrency coins don’t meet sure requirements, they are going to be designated as cautionary and can face delisting.
“Monetary authorities will help cryptocurrency exchanges to conduct critiques on their listed coins each six months concerning whether or not to proceed supporting the buying and selling of the digital property. After this preliminary overview, the exchanges will probably be required to conduct upkeep critiques each three months,” an official from the monetary authorities stated.
Monetary authorities are additionally making ready tips for digital asset transactions, aiming for them to be utilized by digital asset exchanges from subsequent month, when the digital asset consumer safety regulation is ready to come into impact.
The figures from the Korea Monetary Intelligence Unit underneath the Monetary Companies Fee (FSC) confirmed that the overall variety of cryptocurrency coins listed on the home digital asset exchanges stood at round 600 as of the second half of final yr, which is a couple of 3.5 % fall in contrast to the primary half of final yr.
In the meantime, the monetary authorities are additionally making ready a change of their inside constructions to devise insurance policies on the cryptocurrency trade successfully.
The FSC plans to set up a brand new bureau solely devoted to digital property in order to oversee the general regulatory framework for the digital asset trade as early as the tip of this month.
The FSC’s organizational modification, which incorporates these particulars, will full its legislative discover by Monday and will probably be reviewed by the cupboard assembly on Tuesday.
The FSS can also be gearing up for its supervision and investigations into unfair commerce within the digital asset sector at two new bureaus established on the finish of final yr.