Delisting Rumors Cause Panic Selling in South Korea
A series of unfounded stories regarding the delisting of many alternative cryptocurrencies have caused a lot of concern among the investors in Korea. With the Virtual Asset User Protection Act already being deployed fears have erupted to the extent of panic sell. Just the other day, Daehan Kyungjae reported that the regulators will examine the support of around 600 coins in different virtual asset exchanges after a couple of months.
The Act, which came forth on July 19, states that fiat trading platforms such as, Upbit, Bithumb, Coinone, Korbit, and Gopax must obey the provisions of the Act. Disappointed investors who merely sold their repository in altcoins were already hit by fear because of a probable rush of delistings. Some 16 altcoins are said to be in the danger of delisting from the South Korean market by June next year, which would subsequently result in a dramatic collapse in their value, with some of the coins even dropping as significantly as 10-20%.
FSS Not Directly Involved in Listing Reviews
The Financial Supervisory Service (FSS) of Korea has responded to the issues raised in this regard. Right after the story by EBN, FSS had explained that it does not have the task to directly oversee the review of virtual asset listings. Even though the financial regulators are the ones who came up with the listing criteria, they are not part of the direct reviewing process.
“The material submitted is merely the side-report to the National Assembly when the Virtual Asset Law was legislated as“, noted the Virtual Asset Supervision Department of the FSS. They also added that during the process of creating a unified exchange listing standard they, together with the exchanges and the Alliance of Digital Asset Exchange (DAXA), were only the least involved in it.
Unified Review Standards and Investor Impact
An official from a domestic won-based exchange said the trading support best practices were aimed at unifying the review standards which were previously done separately by each exchange. This integration is supposed to cut the process time and to give more clear direction toward listing and delisting virtual assets.
This official even predicted low delistings would cause the consumers insignificant damage. They promised that these practices are the measures that are expected to secure and do not in any case lead to market disturbances.
Conclusion
The affirmation by the FSS that their role is limited in the listing reviews should prove a helpful measure as South Korea prepares to begin the Virtual Asset User Protection Act. Through unified review criteria and the adoption of best practices, the exchanges are going to ensure a stable and secure trading environment to all the stakeholders.
