South Korea Crypto Exchanges to Audit 600+ Tokens for Investor Safety

South Korea’s crypto exchanges are gearing up for internal audits to protect investors and the financial ecosystem. Over 600 cryptocurrencies will be re-examined to meet regulatory standards laid out by Seoul. The goal is to safeguard against risks posed by unregulated and volatile assets.

Which exchanges are involved in the audit process?
A total of 29 crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, are conducting audits. The decision is influenced by the upcoming Virtual Asset User Protection Act in South Korea.

What happens to tokens that fail to meet standards?
Crypto tokens that do not meet regulatory standards will be delisted by exchanges. Exchanges will provide information about delistings to their user communities. Tokens listed less than six months ago will receive a warning before facing expulsion from trade lists.

What is the token review process?
Exchanges will evaluate crypto assets based on security, technology level, regulatory compliance, transaction support, and past business history. Transparency of virtual asset operation, market capitalization, issuance and circulation volume will also be assessed. An alternate screening method will be established for cryptocurrencies issued by decentralised organisations.

Is South Korea cracking down on risky crypto habits?
While South Korea has taken numerous pro-crypto steps, the government remains vigilant over the sector. Authorities have conducted investigations on exchanges like KuCoin and Coinex to ensure legal operations. Plans to ban cryptocurrency purchases through credit cards have also been discussed.

Overall, the audits aim to ensure the safety of investors and maintain regulatory compliance within the crypto industry. Stay tuned for updates on the outcomes of these internal reviews.