South Korean Crypto Exchanges to Review 1,333 Tokens, No Mass Delistings

South Korea’s crypto association maintains that local trading platforms are unlikely to conduct “mass delistings” even as they re-review 1,333 tokens over the next six months.

South Korean crypto exchanges are set to re-evaluate over 1,000 tokens they listed earlier following the implementation of the Virtual Asset User Protection Act, which aims to protect the rights and interests of crypto investors.

In a statement on July 2, the Digital Asset Exchange Alliance (DAEX), representing five Korean crypto exchanges, announced that starting July 19, around 20 domestic crypto exchanges will undergo a six-month review period of 1,333 tokens in response to recommendations by South Korean authorities.

Addressing potential market changes, the alliance emphasized that major domestic crypto exchanges have already implemented key monitoring criteria, making mass delistings unlikely.

“While some assets have been delisted accordingly, the re-evaluation of approximately 1,333 assets over six months reduces the likelihood of mass delistings.”

The Digital Asset Exchange Alliance also noted that only disqualification criteria will be disclosed, stating that other contents “will not be made public to prevent misuse in the market.” The new regulations will apply to nearly three dozen registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, which will conduct initial reviews to determine whether to maintain or delist each token.

Under the new regulatory framework, crypto exchanges must establish a review committee to evaluate various factors such as the reliability of the issuing entity, user protection measures, technology and security standards, and regulatory compliance.

Tokens issued by decentralized autonomous organizations (DAOs) may not meet standard requirements, while tokens that have been traded normally for over two years in regulated markets such as the U.S., U.K., France, Germany, Japan, Hong Kong, Singapore, India, and Australia will be subject to a less strict review process. Additionally, crypto exchanges will be banned from accepting any payments in return for listing a token.

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