The Financial Supervisory Service (FSS) of Korea has responded to concerns regarding rumored mass delistings of altcoins, emphasizing its limited role in the matter.
As reported by EBN, the FSS clarified that it does not directly supervise the review of virtual asset listings. While the financial authorities have contributed to setting listing standards, they are not directly involved in the reviewing process.
Delisting Rumors Cause Panic Selling in South Korea
The upcoming implementation of the Virtual Asset User Protection Act in July has sparked anxiety among investors. According to Daehan Kyungjae, regulators will commence evaluating transaction support for roughly 600 coins on virtual asset exchanges starting next month.
Scheduled to take effect on July 19, the Act mandates that fiat KRW-trading platforms such as Upbit, Bithumb, Coinone, Korbit, and Gopax adhere to its regulations. Consequently, investors have started selling in panic, fueled by concerns over potential delistings of numerous altcoins.
The report highlighted speculation that around 16 altcoins could face delisting from the won-based market by next June. This speculation has led to significant value declines, with approximately half of the coins listed on Upbit’s won market experiencing drops of 10-20%.
FSS Not Directly Involved in Listing Reviews
The Virtual Asset Supervision Department of the FSS clarified, stating, “The mentioned content served as supplementary material submitted to the National Assembly during the enactment of the Virtual Asset Law.”
“The National Assembly had requested the Financial Supervisory Service to assist in establishing a unified listing standard for exchanges at that time,” the authority added.
They further explained, “Financial authorities oversee virtual asset operators and do not directly review products. While we participated in developing best practices upon request, announcements regarding these standards will be made by the exchanges and DAXA.”
An official from a domestic exchange trading in Korean won noted that the new trading support best practices aim to consolidate the review standards previously conducted individually by each exchange into a unified framework.
The official also indicated that the risk of widespread delistings causing harm to consumers is minimal. They emphasized that the implementation of these new practices is not anticipated to significantly disrupt investors.
