South Korea to set up unified crypto disclosure system

South Korea to set up unified crypto disclosure system

South Korea to set up unified crypto disclosure system

South Korean regulator, Financial Supervisory Service, has suggested setting up a unified system to protect investors from illicit activities. The unified system will make it mandatory for cryptocurrency issuers and digital asset exchanges to disclose relevant information and provide relevant data. 

The head of Digital Asset Research at the Financial Supervisory Service, Ahn Byung-nam informed that a unified mandatory disclosure system for cryptocurrency’s listing, issuance, and circulation would help improve the safety of investors, as per the reports based on the Government  Digital Assets Committee meeting held on Monday.

According to other media reports, various other officials asked for stricter disclosure on crypto exchanges and token issuers after the collapse of FTX, bankruptcies, and illicit activities in the industry last year. 

A professor of mathematics at the Catholic  University of Korea, Jeon In-tae said at the meeting that disclosure of significant information related to the digital asset by the exchanges and issuers is mandatory to safeguard investors.

WEMIX, a native token of Wemade by a South Korean blockchain developer, was delisted in the country from four significant exchanges as it was alleged that it underreported the total number of tokens circulated. 

According to news reports, the chief executive officer of local crypto exchange Coinone said the Digital Asset eXchange Alliance (DAXA) is developing a unified standard for exchanges in token delisting. There are five local exchanges under DAXA, Bithumb, Korbit, Upbit, and GOPAX. These licensed exchanges provide fiat-to-currency services to investors.

For last year, South Korea has been trying to form an all-encompassing regulatory framework to protect investors. Almost ten proposals have been shared with the South Korean National Assembly. However, nothing has been discussed yet at its parliamentary sessions. 

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