The government of South Korea is leaning hard on altcoins and has issued strict instructions to crypto exchanges to do a thorough review of 600 online assets. Failure to initiate and complete the task will lead to deregistration. Following that, it will be necessary for them to carry out maintenance appraisals every quarter. This will include the trust factor about the suppliers, as well as the user safeguard mechanisms.
In the case of assets not matching up with the required grades, will receive a cautionary trade note, following which will be the process of deregistration. The aim of the exercise is to ascertain the fact that online assets are duly registered with the 29 crypto exchanges complying with the Virtual Asset User Protection Act. It will become law on the 19th of July, 2024.
Executing the law will entail Korean officials bringing in the required criteria for crypto exchanges to carry out their business in South Korea.
According to a person of authority, the initial step will have the exchanges looking into the viability of the online assets for trading practices, followed by quarterly appraisals being conducted. In the case of certain cases not reaching the requirements totally, their transaction backing will be halved.
As per the reports doing the rounds, the exchanges will be required to access the allocation of online assets, and problem areas and, as a priority, view the safety measures adopted.
In the case of online assets not having a centralized releasing measure like bitcoin, and the ones released by a decentralized autonomous organization (DAO), there will be a separate kind of review conducted.