South Korea implements stricter rules for crypto exchange listings.
South Korean financial authorities plan to release new guidelines by late April or early May at the latest that will impose stricter regulations on token listings on centralized crypto exchanges.
Local media News 1 reported that South Korea's financial authorities prohibit listing hacking incidents of digital assets on domestic exchanges unless the cause is properly established.
In addition, foreign digital assets can only be listed on a local exchange if a white paper or technical manual is published for the South Korean market.
However, tokens that have been listed on a licensed exchange for more than two years may not need to meet these new standards.
The guidelines may stipulate that exchanges must remove cryptocurrencies from their listings if they do not adequately disclose important information, such as discrepancies between the actual circulation and the amount disclosed.
The report went on to say that the South Korean government is collecting comments from local exchanges. Since the latter part of 2023, the Financial Supervisory Service has been drafting detailed guidelines, soliciting feedback from stakeholders such as the Digital Asset Exchange Association.
The Financial Services Commission is a government agency responsible for supervising and regulating financial institutions and financial markets in South Korea.
The South Korean government issued a new amendment to the Virtual Property Consumer Protection Act in early February.
The Act provides for serious criminal penalties and penalties for violations, including simple imprisonment for a term of not more than one year or a fine of three to five times the amount of illegal profits.
Related: Crypto.com Expands in South Korea Despite Increasing Regulatory Scrutiny
This legislation was prompted by a significant industry crisis involving Terraform Labs and its founder, Do Kwon, a South Korean citizen. By May 2022, Terra's collapse resulted in over $450 billion in losses.
The Tax Justice Department of Gyeonggi Province – South Korea's most populous province – collected 6.2 billion won ($4.6 million) in unreported taxes in 2023 after tax evaders implemented a digital tracking system targeting crypto accounts.
South Korea's Financial Intelligence Unit announced a domestic digital asset exchange in 2015. It indicated 49% more suspicious transactions in 2023 compared to 2022. On February 14, FIU revealed its 2024 work plan, highlighting critical information and strategic initiatives to regulate the crypto market.
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