Contents
Unconfirmed Delisting Rumors Trigger Panic
Quarterly Review and Investor Panic
Impact on Competitive Coin Prices
Explanation of Listing Inspection Standards
Financial Supervisory Commission Clarifies its Role
Overreaction to New Legislation
Financial Supervisory Commission Calls for Prudent Investment
With the expected enforcement of the Virtual Asset Act next month in South Korea, the cryptocurrency market has experienced significant turbulence. Due to rumors that several competitive coins may be delisted, the prices of many digital assets have dropped significantly.
South Korea plans to establish a “Virtual Asset Division” by the end of June to protect user assets, and civil servants are not allowed to hold virtual assets.
Starting next month, financial authorities plan to conduct quarterly reviews of 600 domestic digital assets. Coins that do not meet specific standards may face trading suspensions, causing widespread panic selling among investors.
In fact, the Securities and Futures Commission in Hong Kong also conducts similar listing inspections for digital assets, but since South Korea is currently a key cryptocurrency market, it is expected to have a more extensive impact.
According to reports in the South Korean media, rumors have circulated about the potential delisting of 16 competitive coins in June. These speculations have led to a 10-20% price drop in about half of the coins listed on Upbit.
Listing inspections are divided into formal and qualitative categories. Formal inspections focus on the reliability of the issuing entity, user protection mechanisms, technical security, and legal compliance. Qualitative inspections consider total issuance and circulation plans, as well as changes in business plans.
The Virtual Asset Supervision Bureau of the Financial Supervisory Service clarified that financial authorities do not directly participate in the inspection of virtual asset transactions. The bureau has already submitted relevant details to the parliament when the Virtual Asset Act was formulated. The Financial Supervisory Service supports establishing unified listing standards for exchanges but does not directly inspect individual assets.
Cryptocurrency exchanges attribute the market crash to investors’ overreaction before the law is implemented. An exchange operator mentioned that the new standards do not differ significantly from the previous ones, indicating a low probability of mass delisting.
Rumors of recent delisting lists are not new. Such rumors often revolve around high-volume “kimchi coins” and have frequently surfaced in the past, but they are usually unfounded.
The Financial Supervisory Commission urges investors to act prudently, pointing out that many alternative coin investors lack a thorough understanding of their investments. An official from the Financial Supervisory Commission emphasized the principle of investment responsibility and warned investors to be cautious of risks.
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