South Korean financial regulators are reportedly debating a potential requirement that companies must receive direct authorization from the government in order to list their cryptocurrencies on domestic digital asset exchanges, according to The Herald Business Monday.
South Korean authorities are considering legislation that would have the government review and approve all new token listings on crypto exchanges, as regulators perceive this process as possibly leading to heightened risks and losses for investors, as reported by local media.
The Digital Asset Basic Act, an encompassing legislation on digital assets, is being proposed to include such a bill, yet there is disagreement among regulators on the matter, The Herald Business reported.
In South Korea, the delisting of WEMIX from the nation’s four largest exchanges followed after the blockchain game developer misreported the amount of its crypto in circulation.
A similar screening process is implemented in Japan, with the Virtual and Crypto Assets Exchange Association (JVCEA) examining new crypto listings on Japanese exchanges.
The JVCEA is likely to loosen the vetting process later this month, allowing tokens to be exempted if they have already been listed in the local crypto market.
According to local legislation, any new stock offering in South Korea must be reviewed by the Financial Services Commission (FSC).