South Korea Orders 5 Largest Crypto Exchanges To Delist Securities Tokens

Key Points:

• South Korea orders the country’s five most significant cryptocurrency exchanges under the DAXA association to delist tokens with the nature of security.
• DAXA will collect comments and submit them to the Financial Services Commission around February 9.

South Korea orders the top 5 crypto exchanges under the DAXA association to delist tokens with security characteristics.

The Korean Financial Services Commission has sent instructions to the officials of the five most considerable virtual assets (cryptocurrency) exchanges in the country in the DAXA association for the classification and delisting of token securities among the listed virtual assets.

“The purpose of a virtual asset of a security nature, regardless of the form of issuance, is a security in the form of a token and not a token in the form of a security.”

If this policy is implemented, a substantial portion of tokens listed and traded on existing virtual asset exchanges may be delisted on crypto exchanges or may be transferred to securities companies.

“If the guidelines are followed, there is a high probability that many tokens already listed and traded on existing virtual asset exchanges will be delisted or transferred to securities companies that do business that,”

DAXA plans to gather input from individual companies through its Future Trading Support Subcommittee. The first comments and questions are expected to be collected by February 9 and submitted to the Financial Services Commission.

As for the issue of delisting tokens, the major Korean exchanges under DAXA have joined hands to establish common standards for delisting. The purpose of the expected standard for tokens to be secure is to avoid losses for investors.

South Korean cryptocurrency exchange experts will announce a set of voluntary regulations on coin listing and delisting to combat market disasters like the crash of stablecoins Luna and Terra.

According to Representative Yoon Chang-hyun, who chairs the National Assembly’s virtual assets group, the self-regulatory package will likely include a review of listed digital currencies every six months and a review of listing cases listing and delisting.

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