[NEWS] South Korea to release guidelines banning hacked cryptocurrencies from listing

It has been reported that the Korean financial regulator, the Financial Supervisory Service (FSS), will announce new guidelines for cryptocurrency exchanges listing crypto assets. Local media "News1" reported. The latest guidelines prohibit listing or relisting of hacked crypto assets if there is no sufficient explanation for the cause of the incident.

In addition, the guidelines require overseas cryptocurrency issuers to release white papers and technical manuals specifically for the Korean market. This is aimed at resolving the information gap between overseas cryptocurrency projects and domestic projects.

Since the second half of last year, the FSS has been setting listing guidelines in response to opinions from exchanges such as the Digital Asset Exchange Council (DAXA). There were listing review guidelines before, but with the enforcement of the Cryptocurrency User Protection Act in July, it was decided that it was necessary to set the standards prepared by the authorities as well.

This was added as a mandatory item in the opinion of the cryptocurrency industry at the time the Cryptocurrency User Protection Act was enacted. The industry said that common listing standards should be set for cryptocurrency exchanges. This time, the authorities have taken the industry's opinions into account while considering the current guidelines.

The guidelines include a provision that cryptocurrencies with a history of hacking or security incidents cannot be listed or relisted if the cause of the incident is not clearly explained or the damage has not been repaired.

Since the end of last year, there have been a series of hacking incidents, mainly involving domestic cryptocurrency projects. It seems that most of the projects have not been able to fully understand the cause of the hacking and have been delisted.

In the future, if a project is hacked like this and the cause of the incident cannot be clearly understood or resolved, it will not be possible to relist it.

Meanwhile, an exception provision has also been incorporated that allows cryptocurrencies that have been traded on overseas cryptocurrency exchanges for more than two years to be exempt from some of the standards in the listing guidelines.

Exchanges that have obtained licenses in accordance with the regulations of each country will be considered ``overseas cryptocurrency businesses,'' and only if overseas cryptocurrency businesses have been trading for more than two years will they be able to be listed in Korea without considering some of the standards.

Reference: Report
Image: Shutterstock

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