South Korea's upcoming Virtual Asset User Protection Act has sent shockwaves through the cryptocurrency market, causing a significant decline in altcoin prices. The government's plan to inspect 600 tokens has led to widespread panic among investors, who fear mass delistings and potential losses.

The Virtual Asset Act aims to provide a structured framework for virtual asset transactions and protect users, but its implementation has inadvertently sparked fears among investors. The law requires exchanges to review their listed tokens quarterly, which has led to rumors of potential delistings. These rumors have caused a significant decline in altcoin prices, with many coins experiencing price drops of up to 20%.

The Financial Supervisory Service has clarified its role in the review process, stating that it is not directly involved in conducting the reviews. Instead, the exchanges and the Digital Asset eXchange Alliance (DAXA) will be responsible for reviewing the tokens. The Financial Supervisory Service has urged investors to be aware of the risks and to consider the sustainability of their investments.

The recent price drop has been attributed to investors overreacting ahead of the law's enforcement. The exchanges have emphasized that mass delistings are unlikely and that unfounded lists of potential delistings often circulate in related communities. The Financial Supervisory Service has stressed the importance of responsible investing and warned investors to consider risk factors.

In conclusion, South Korea's token inspection has sparked a frenzy among altcoin investors, leading to significant price drops. The government's plan to inspect 600 tokens has led to widespread panic among investors, who fear mass delistings and potential losses. The Financial Supervisory Service has clarified its role in the review process and urged investors to be aware of the risks and to consider the sustainability of their investments.