South Korea is poised for a significant shift in its cryptocurrency market. As new investor protection laws come into force on July 19, crypto exchanges are preparing to review and adapt their lightings.
What does this mean for the market and cryptocurrency traders? Let’s dive in!
South Korea’s New Crypto Regulations
The Virtual Asset User Protection Act, enacted on July 18, 2023, and effective from July 19, 2024, aims to safeguard crypto investors and regulate the virtual asset market. This new law addresses unfair trading and introduces essential user protection measures, marking the first comprehensive regulation for the virtual asset industry in South Korea.
Impact on Crypto Exchanges
Leading exchanges in South Korea, like Upbit, are gearing up to comply with the new rules. The Digital Asset Exchange Alliance, representing these platforms, announced that they will review 1,333 altcoins over six months to ensure compliance. This reassessment aims to prevent immediate mass delistings, allevating fears of a sudden reduction in available tokens.
South Korean Crypto Market Analysis
Upbit, one of the top global exchanges, and the topmost in South Korea, faces increased operational costs due to these new regulations. With a 24-hour trading volume of $783 million and 204 listed coins, Upbit’s compliance efforts will be closely watched. Notably, trading pairs like ZRP/KRW (13.48%) and BTC/KRW (11.69) dominate the platform, with LayerZero, Bitcoin, Taiko, Solana, XRP and Ethereum being top coins.
Crypto Market Reactions and Price Movements
The introduction of these laws has already impacted the crypto market, with crypto prices dipping as crypto investors assess potential changes. However, specific coins like LayerZero and Taiko have been resilient, recording significant gains over the past week. LayerZero marks a 7-day change of +34.9% and a 24-hour change of +9.2%. Taiko registers a 14-day change of +23.9%, a 7-day change of 26.7% and a 24-hour change of +5.4%.
As South Korea’s crypto market adapts to these new regulations, crypto investors should stay informed about potential changes in token availability and market dynamics. The coming months will be crucial in shaping the future of cryptocurrency trading in the region.
Also Read: Crypto Regulations in South Korea 2024
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