According to Chosun, a local news site, South Korea financial authorities revealed their intention to conduct a comprehensive review of the listings of around 600 cryptocurrencies on regional exchanges.
The authorities are reviewing the cryptocurrencies in compliance with the Virtual Asset User Protection Act, which takes effect on July 19, as part of the newly formulated regulations.
Nonetheless, reports from local media state that the South Korean government has finalized a regulatory framework called the best practice plan for virtual asset transaction support as part of the pending act.
South Korea Outlines Exchanges’ Requirement
The plan includes several criteria for listing cryptocurrencies on local exchanges. South Korean authorities will set up stricter standards for cryptocurrencies to meet, in addition to the current system that requires crypto exchanges to review and list their cryptocurrencies personally.
Regulators are considering nine regulatory requirements, and they will review cryptocurrencies based on their compliance with local regulations, user protection measures, security protocols, and other vital factors.
Further, authorities will require cryptocurrencies to be traceable through on-chain explorers. They will also review the white paper of each crypto asset seeking listing and its circulation process before approving it.
Financial authorities have requested 29 crypto asset exchanges, including Upbit, Bithumb, Coinone, Cobit, and GOPAX, to conduct an initial review to determine the eligibility of cryptocurrencies listed for trading.
One of the financial officials said, “We will allow virtual asset exchanges to review whether to maintain trading support for virtual assets that have been traded for six months and will conduct a maintenance review every three months after that.”
He added, “If a virtual asset fails to meet the maintenance criteria, it will be inevitable to stop trading support.”
Thailand Approves a Spot Bitcoin ETF
Asia’s interest in crypto extends beyond South Korea. For instance, in a recent report, the Securities and Exchange Commission (SEC) of Thailand approved launching a spot Bitcoin exchange-traded fund (ETF), making it the first Southeast Asian country to adopt this methodology.
Thailand SEC approved One Asset Management (ONEAM) to launch the ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI). By approving the launch of the ONE-BTCETFOF-UI, tailored for high-net-worth individuals and institutions, Thailand is taking a significant step to promote the broader adoption of cryptocurrencies across Asia.
