According to a report from news agency News1, South Korean financial authorities are set to introduce new guidelines that will impose stricter regulations on token listings on centralized cryptocurrency exchanges.

The guidelines are expected to prohibit tokens issued by projects that have experienced hacking incidents and have yet to address security concerns from being listed on local exchanges. Additionally, it is reported that the Financial Services Commission may require foreign token projects to develop specific whitepapers tailored for the local market in order to gain listing approval on domestic exchanges. However, tokens that have already been listed on licensed exchanges for more than two years may be exempt from these new requirements.

Furthermore, the guidelines may mandate exchanges to delist cryptocurrencies if their issuers fail to provide accurate and transparent information, such as discrepancies between disclosed circulation numbers and actual amounts. The South Korean government is aiming to release these new guidelines as early as later this month, and it is currently soliciting feedback from local exchanges.

As of now, the Financial Services Commission, which is the primary regulatory body overseeing the local financial sector, has not responded to requests for comment from The Block.

South Korea is renowned for hosting one of the most active cryptocurrency markets globally. Data from The Block reveals that Upbit, South Korea's largest cryptocurrency exchange, processed over $221 billion in spot trading volume in March alone, accounting for nearly 9% of the global spot volume.