South Korean authorities are reportedly planning to release updated guidelines for virtual asset trading. These guidelines will prohibit the listing or relisting of coins that have previously been hacked. Additionally, the guidelines will require issuers of “foreign” virtual assets to release a whitepaper or a technical manual specifically for the Korean market.
South Korea to Unveil Guidelines Barring the Listing of Hacked Coins
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Guidelines for ‘Foreign’ Virtual Assets
South Korean authorities are reportedly planning to release updated guidelines for virtual asset trading. The guidelines ban the listing or relisting previously hacked coins if no satisfactory explaining the cause of the incident is given. Additionally, the guidelines will require issuers of “foreign” virtual assets to release a whitepaper or a technical manual specifically for the Korean market.
According to a report from News 1, the Korean Financial Supervisory Service (FSS) has been gathering opinions on the revised listing guidelines from the Digital Asset Exchange Association (DAXA). The report suggests that recent hacking incidents involving domestic virtual asset projects have prompted authorities to propose these changes.
Local projects that have been hacked include Galaxia (GXA), Orbit Chain (ORC), Somesing (SSX), and Play Dapp (PLA). Following the hacking incidents, many of these projects’ respective coins were subsequently delisted from cryptocurrency exchanges affiliated with Daska. According to the report, Galaxia is the only project that has recovered.
However, the upcoming guidelines will make it impossible to relist coins of domestic projects that recover from hacking incidents but ultimately fail to identify the cause of the breach.
Meanwhile, an unnamed official from the FSS confirmed the regulator’s plan to release the updated guidelines, as quoted in the report.
“It is true that the contents of the listing guidelines have been almost confirmed, but the exact announcement schedule has not yet been determined. If procedures such as reporting to the National Assembly are completed, it could be as early as the end of this month, or as late as early next month,” the official said.
In addition to the rules for listing or relisting, the News 1 report stated that the revised guidelines will also outline circumstances in which support for a specific coin is terminated.
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