South Korean financial authorities are discussing possible mandates for companies to pursue direct approval from regulators to list their cryptocurrencies on local digital assets exchanges, news outlet The Herald Business reported on Monday.
See related article: South Korea’s Wemade shares drop, WEMIX token plunges after delisting verdict
Fast facts
- Currently, cryptocurrency exchanges themselves are responsible for reviewing new token listings in South Korea, a process that regulators believe may increase risks and losses for investors, the local media reported.
- Such a bill may be included in South Korea’s upcoming Digital Asset Basic Act, an all-encompassing regulatory framework on digital assets, but regulators are divided on the suggestion, according to The Herald Business.
- Developments in South Korea followed the nation’s top four exchanges’ delisting of WEMIX last week, the native token of local blockchain game maker Wemade Co., after the developer misreported circulation numbers of its cryptocurrency.
- A similar screening process exists in neighboring Japan, where the Virtual and Crypto assets Exchange Association (JVCEA), a self-regulatory body that oversees local crypto exchanges, examines new crypto listings on Japanese exchanges.
- The JVCEA is reportedly looking to ease the vetting process as early as later this month, to a point where tokens will be exempt from the examination if they have previously been listed in the local crypto market.
- Under local law, a new stock offering in South Korea is reviewed by the Financial Services Commission (FSC). The FSC has not responded to Forkast’s queries on the reported development.
See related article: S.Korea central bank puts hand up to regulate stablecoins