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South Korea introduces new regulations for the crypto space

South Korea introduces new regulations for the crypto space

Cryptodnes2024/07/04 01:01
By:Cryptodnes

South Korea's leading crypto exchanges are actively fighting concerns that new regulations designed to protect investors could disrupt speculative trading in smaller digital assets.

These efforts come at a time when the country is preparing for the application of new consumer protection legislation on 19 July.

The Alliance of Digital Asset Exchanges announced that exchanges will thoroughly review altcoin listings to ensure they comply with the upcoming regulations. This evaluation will cover 1,333 tokens over a six-month period, with the goal of reassuring investors that no immediate mass delisting is anticipated.

In its statement, the union underlined , that future token listings will be scrutinized under the Digital Assets Consumer Protection Act once it is passed.

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South Korea plays an important role in the global crypto market, with the won surpassing the dollar as the most used currency for trading digital assets at one point this year. Approximately 10% of South Korea's population invests in cryptocurrencies, with the majority preferring smaller tokens over Bitcoin .

Upbit, one of the top five exchanges globally right now, dominates the crypto trading landscape in South Korea. Along with its competitors, Upbit faces the challenge of increased costs associated with meeting the requirements of the new digital asset code. These exchanges work to achieve a balance between compliance with regulatory requirements and maintaining a stable trading environment for smaller digital assets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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