South Korea's financial regulators are preparing rules to stop trading some cryptocurrencies. The new rules, called "Best Practices for Compliance with the Virtual Asset User Protection Act," will lead to the removal of several cryptocurrencies from trading. These rules will be announced in early June.

The rules will have guidelines for adding cryptocurrencies for trading and deciding if already listed ones should continue trading. They aim to set up a way to remove specific cryptocurrencies if there are any problems. These rules will be ready between late May and early June. The Financial Supervisory Service of South Korea is creating guidelines to help crypto exchanges follow the law before the Virtual Asset User Protection Act starts in July. These guidelines will set standards for how much cryptocurrency can be issued, how it's distributed, and how transactions are supported.

The rules might also stop listing cryptocurrencies that have been hacked before. They will also ask for whitepapers and technical guides in Korean for cryptocurrencies from other countries. The Virtual Asset User Protection Act is still new, so it's hard to control all the companies making or selling cryptocurrencies.

To solve this, South Korea is making rules for companies to follow themselves. The Financial Supervisory Service wants to improve the rules made by the Digital Asset Exchange Alliance (DAXA). The DAXA made guidelines last year, but they are not always followed by big exchanges. Some people criticize DAXA for not being strict enough. They say self-regulation is not working.

DAXA said its members don't have to follow its rules. They also said each member decides on its own what to do when there's a problem. The new rules from South Korea might make exchanges create their own rules for listing cryptocurrencies. These rules will be more serious because they are made by the government, unlike DAXA's rules which are only suggestions.