Financial regulators in South Korea are currently debating whether to make it mandatory for regulators to approve cryptocurrency projects before they can be listed on publicly accessible centralized exchanges. The regulators consider this crucial because it will lessen future potential losses for traders and investors.
Prior to the regulators raising these concerns, it was the responsibility of cryptocurrency exchanges to examine and analyze crypto projects before listing them on their respective platforms. According to a South Korean local media outlet, the regulators view this process as risky and unfavorable to cryptocurrency traders and investors.
The proposed bill may be included in the upcoming South Korean Digital Asset Basic Act, which will cover all types of digital assets. However, according to reports by the local media outlet, some regulators are opposed to this idea, resulting in internal conflict.
This development is a response to a recent event, where WEMIX was delisted last week by the top four exchanges. WEMIX is the native token of well-known South Korean cryptocurrency game developer Wemande Co. The WEMIX developers were accused of providing false information about the number of tokens in circulation.
The financial regulators further argued that, in accordance with South Korean law, any new stock offering must first be examined and approved by the nation’s Financial Services Commission (FSC) before it can be made public.
South Korea is not alone in this; Japan, a neighboring country, has a similar regulatory body that monitors the operation of local cryptocurrency exchanges and evaluates new crypto assets before listing them on public exchanges. The Japan Virtual and Crypto Assets Exchange Association (JVCEA), a self-regulatory organization with all the exchanges as members, is in charge of enforcing these regulations.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
