South Korea to Tighten Token Exchange Regulations, Including Blocking Hacked Tokens
South Korea is set to introduce stricter regulations for token listing on exchanges, including the blocking of tokens that have been hacked.
The country’s financial authorities are preparing to release guidelines for virtual asset trading support, expected to be published by the end of this month or early next month, according to a report by News 1 .
The Financial Supervisory Service has been working on these listing guidelines since the second half of last year, gathering input from exchanges such as the Digital Asset Exchange Association (DAXA), the report said.
While DAXA had previously prepared joint listing review guidelines, it was deemed necessary for the authorities to establish their own standards ahead of the implementation of the Virtual Asset User Protection Act in July.
According to news1, South Korea's financial authorities will issue new guidelines to impose stricter regulations on tokens listed on CEXs. Tokens that have been hacked and have not yet resolved security issues may be blocked from listing, and may be forced to design specific…
— Wu Blockchain (@WuBlockchain) April 5, 2024
The upcoming guidelines specify that virtual assets with a history of hacking or security incidents will not be eligible for listing unless the cause of the incident has been adequately explained and the damages have been recovered.
In recent months, several hacking incidents have targeted domestic virtual asset projects, resulting in the compromise of coins such as Galaxia (GXA), Orbit Chain (ORC), Somesing (SSX), and Play Dapp (PLA).
These coins were delisted from DAXA-affiliated exchanges due to the failure to properly identify the cause of the hacks.
Galaxia was an exception as it managed to recover the damages
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