South Korean crypto exchanges have set guidelines to allay mass panics.

South Korea's crypto exchanges have unveiled new guidelines seeking to avoid mass listings ahead of legislation to curb market manipulation under the Digital Asset Exchange Alliance (DAXA).

The Directive establishes requirements for supporting and terminating the trading of digital assets on exchange platforms; DAXA In a statement on Tuesday.

The alliance said 1,333 existing digital assets will be reviewed over six months to ensure a systematic approach. DAXA, a consortium of major South Korean cryptocurrency exchanges, said it is working with financial authorities and experts to review their status.

The hope is that more transparency will lead to greater compliance, reducing the risk of assets being taken from the exchange.

“Domestic major exchanges are already implementing key standards of best practices from the end of 2023,” reads a draft Google translation of DAXA's statement. “So large-scale details are less likely to occur simultaneously.”

In particular, the directive focuses on transparency in data disclosure and prohibits fees for trading support, meaning that exchanges are not allowed to charge any fees or accept tokens for listing unless expressly stated otherwise.

Key aspects include comprehensive assessment criteria covering provider integrity, user protection measures, technology and security standards, and regulatory compliance.

Exchanges are expected to provide important information such as white papers and important announcements from issuers, the statement said.

It comes ahead of the country's “Virtual Property User Protection Act,” which is expected to take effect on July 19.

Enacted in response to the fallout from the FTX collapse, the law mandates stricter controls and standardized procedures across exchanges to prevent market manipulation and protect investors.