South Korean media reported that the upcoming implementation of the Virtual Asset User Protection Act (Virtual Asset Law) has led to a wave of panic selling in the cryptocurrency market.
According to local media, the law, which will be implemented next month, has led to rumors that some altcoins may be delisted, causing prices to drop.
The panic selling was triggered by news that financial authorities will examine 600 domestic virtual assets every three months, starting next month. Trading in coins that do not meet the listing standards will be suspended. According to analysts, this news sparked a wave of “panic selling”, with investors shedding assets out of fear.
Today, 16 altcoins have been identified as “stocks with potential to list and delist in KRW in June” on various social media platforms, including coin communities. As a result, almost half of the coins listed on the KRW market saw their prices drop by 10% to 20%.
However, the South Korean government has made it clear that it is not directly involved in examining virtual asset transactions. The Virtual Assets Supervision Office of the Financial Supervision Service stated that the relevant information constituted supplementary material submitted to the National Assembly when the Virtual Assets Law came into force. The National Assembly had asked the Financial Supervision Service to support the establishment of unified listing standards for stock exchanges.
The Bureau added that they will participate in the creation of best practices, but announcements will be made by the Stock Exchange and DAXA. They stressed that financial authorities supervise virtual asset operators and do not directly examine the stocks.
*This is not investment advice.
