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17/06/24
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South Korean Authorities to Implement New Law for Regular Review of Crypto Tokens
South Korea’s Financial Service Commission (FSC) has reportedly asked registered cryptocurrency exchanges to ensure regular evaluation of the tokens listed on their exchanges and determine whether to continue providing trading services related to such tokens.
The Korea Times’ report noted that the South Korean authorities is planning the implementation of a law regarding virtual asset user protection next month. According to the stipulations of the law, those who violate will be subjected to fines and criminal punishments.
Punishments include a fixed-term imprisonment of over one year or a fine of three to five times the amount of illegal profits. Twenty-nine registered cryptocurrency exchanges across the country will be required to review crypto tokens listed on their platform.
Further, they would be required to follow stricter review guidelines for token listings and review listed tokens every six months towards ensuring compliance with the new guidelines. Maintenance reviews are to be carried out every three months following the initial review.
Four months ago, the authorities came up with a fresh update to the Virtual Asset Users Protection Act. Two months ago, the commission mentioned upcoming tougher regulatory guidelines to list new tokens on cryptocurrency exchanges.
The FSC suggested some steps towards improving market security and monitoring at the time, including how to forbid the listing of tokens from compromised projects. The new guidelines may not permit projects to create tokens characterized by security breaches and unresolved security issues, and list them on exchanges.
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