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South Korea Regulates Token Listings to Prevent Cryptocurrency Scams! Here are the Details

source-logo  en.bitcoinsistemi.com 05 April 2024 09:05, UTC

South Korean financial authorities are preparing to unveil new guidelines aimed at imposing stricter regulations on token listings on centralized crypto exchanges.

According to the report, the upcoming guidelines are set to prevent tokens issued by projects that have been victims of hacking incidents and have not yet addressed vulnerabilities from being listed on local exchanges.

Moreover, the Financial Services Commission (FSC) in South Korea may require foreign token projects to develop white papers specifically tailored for the local market to secure their listing on local exchanges.

However, tokens that have already been listed on licensed exchanges for a period exceeding two years may be exempt from complying with these future criteria.

To promote transparency and investor protection, the guidelines may also require exchanges to remove cryptocurrencies from their platforms if issuers fail to adequately disclose key information.

This includes cases where actual circulation figures differ from declared amounts.

South Korea has one of the most vibrant cryptocurrency markets in the world. Upbit, South Korea's largest cryptocurrency exchange, is one of them, with a spot transaction volume of over $221 billion in March alone, accounting for approximately 9% of global spot volume.

*This is not investment advice.