New Crypto Regulation Mandates Quarterly Reviews and Potential Delistings for Over 600 Assets

Starting next month, the Virtual Asset User Protection Act will mandate quarterly reviews of over 600 crypto stocks on exchanges. Problematic stocks may be designated as tradable or delisted.

From July 19, 29 notified exchanges, including major ones like Upbit and Bithumb, will conduct an initial screening to decide if they should maintain listing support. A six-month review period is followed by quarterly checks.

Exchanges will assess the reliability, user protection, technology, security, legal compliance, and transparency of the issuing entities. If issues are found, the stocks may be designated as tradable or delisted. An alternative screening method will be introduced for Bitcoin and DAOs to relax some requirements.

According to the Financial Intelligence Unit, the total number of listed crypto stocks on 22 domestic exchanges was 600 in the second half of last year, a 3.5% decrease. New listings remained steady, but trading suspensions rose by 20%. Of these, 40% were domestically produced “kimchi coins.”

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