Cryptocurrency Market Sees Altcoin Decline Due to Virtual Asset Law Implementation
Amid a significant drop in the cryptocurrency market, speculation has arisen regarding the decline in altcoins, linked to the forthcoming implementation of the Virtual Asset User Protection Act (Virtual Asset Law) in South Korea.
Reports from South Korean media indicate that the impending enforcement of the Virtual Asset Law has sparked a wave of panic selling among investors, fueled by rumors of potential delisting of certain altcoins, leading to price decreases.
The news of financial authorities conducting reviews of 600 domestic virtual assets every three months, starting next month, causing suspension of trading for coins that fail to meet listing criteria, has resulted in a frenzy of panic selling, as investors react out of fear.
In response to social media discussions identifying 16 altcoins as potential listings and delistings on the KRW market in June, nearly half of the coins listed on the KRW market witnessed a drop in prices ranging from 10% to 20%.
Despite the concerns, the South Korean government clarified that it is not directly involved in scrutinizing virtual asset transactions. The Virtual Asset Supervision Bureau of the Financial Supervisory Service emphasized their role in supporting the establishment of unified listing standards for exchanges, with announcements to be made by the stock exchange and DAXA, highlighting that financial authorities oversee virtual asset operators and do not directly assess stocks.
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