As South Korea's Virtual Asset User Protection Act prepares to take effect on July 19, major cryptocurrency exchanges like Upbit and Bithumb are accelerating their token listing processes. The impending stricter regulations for new token listings and enhanced scrutiny of existing tokens have prompted these platforms to fast-track their approval pipelines.
Exchange Listings Surge Ahead of Regulatory Deadline
Upbit's 2024 listing trends reveal a clear "mountain-shaped" pattern, peaking in May as exchanges reacted to the new compliance landscape. Meanwhile, Bithumb saw its highest activity in January before another surge in June. Three other exchanges—Coinone, Korbit, and Gopax—collectively listed 17 tokens during June alone.
👉 Discover how leading exchanges adapt to regulatory changes
Key developments include:
- Upbit added 20 tokens between January-July 10, with 3 new listings in just the first two weeks of July
- Bithumb listed 12 tokens in January, paused, then added 13 more across May-June
- A remarkable 5 tokens ($ENS, $AR, $AUCTION, $STG, $BEAMX) were listed collectively by Upbit/Bithumb within just 4 days (May 28-31)
Compliance Preparations in Full Swing
Exchanges are implementing multiple measures to align with the new law:
Upbit
- Enhanced unfair trading monitoring systems
- Launched educational video series on ETFs
- Collaborates with FSS and DAXA on fraud prevention
Bithumb
- Revised terms of service to clarify asset classifications
- Offers ₩300M (~$220K) whistleblower rewards
- Strengthened cold wallet management protocols
Insurance Sector
- 5-6 insurers developing specialized virtual asset coverage
- Products expected to launch alongside the law's enactment
Industry Implications
Analysts suggest the regulations may:
- Increase market transparency
- Prevent speculative trading advantages
- Stimulate healthier trading activity
👉 Explore compliant trading platforms
FAQ Section
Q: Why are exchanges listing tokens so quickly now?
A: They're clearing backlogs before stricter approval processes take effect July 19.
Q: How will the new law protect users?
A: It mandates monitoring for unfair trades, requires insurance/reserves against hacks, and enhances asset custody standards.
Q: Which tokens are most affected?
A: All new listings face heightened scrutiny, but existing tokens won't face immediate delisting per regulators.
Q: Where can investors learn about compliant trading?
A: Exchanges like Upbit and Bithumb now offer educational content via YouTube and official channels.
Note: Always conduct thorough research and assess risks before virtual asset investments.