South Korea’s Crypto Association to Re-evaluate 1,333 Tokens: Unlikely Mass Delistings, Says Alliance

South Korea’s crypto association, the Digital Asset Exchange Alliance (DAEX), has announced that local trading platforms are set to re-evaluate over 1,000 tokens in response to new regulations aimed at protecting the rights and interests of crypto investors. Despite this massive review process, the alliance asserts that mass delistings are unlikely to occur.

Starting on Jul. 19, around 20 domestic crypto exchanges will undergo a six-month review period of 1,333 tokens, following recommendations from South Korean authorities. The alliance emphasized that major exchanges have already implemented key monitoring criteria, reducing the likelihood of mass delistings.

However, only disqualification criteria will be disclosed to the public, with other contents remaining confidential to prevent market misuse. The new regulations will apply to nearly three dozen registered exchanges, including well-known platforms like Upbit, Bithumb, and Coinone.

Under the new regulatory framework, exchanges must establish a review committee to evaluate 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 face challenges meeting these requirements, while tokens with a history of trading in regulated markets will undergo a less strict review process.

Additionally, exchanges will be prohibited from accepting payments in exchange for listing a token. The DAEX’s announcement comes as South Korea continues to refine its crypto regulations to ensure a safe and transparent trading environment for investors.