South Korea’s largest crypto exchange published its token listing procedure Friday in response to pressure from the government following the collapse of the Terra stablecoin.
The listing procedures include examining transparency of the underlying project, support for transactions and fair participation for investors. Delisting criteria include violation of laws, discovery of technological vulnerabilities, abandonment of the project and user protection.
The Seoul-based exchange releases a notice 10 days prior to delisting, except in emergency situations.
Upbit is the country’s largest crypto exchange in terms of trading volume, and a listing or delisting on the platform has an impact on price movements.
A senior executive at the exchange told CoinDesk that “cryptocurrencies are no different from the products that go on the shelves at groceries or department stores,” he said, saying that clients have choices. “Not everyone shops to eat peas and carrots, the demand for desserts also exists.”
He described Korea’s framework for cryptocurrency regulation so far as “a copy of the securities market,” which in his view, does not acknowledge their differences.
Some coins, like meme coins, “simply don't fall neatly into a set of categories made for securities or other commodities,” he said.
“Local regulations in most cases will work against a market's competitiveness,” he said.
Five of the country’s exchanges left the Korea Blockchain Association to set up the Digital Asset Exchange Joint Council in June.
Upbit will be a key player in this self-regulatory organization, which plans to draft policy proposals for government attention.
Like other exchanges, Upbit has been hit by the market decline, with revenue dropping by 70% in Q2.
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