In a move to enhance user protection and prevent fraud in the cryptocurrency market, South Korea's financial regulator, the Financial Service Commission (FSC), has announced a new law that requires crypto exchanges to regularly review their token listings. The law, which will come into effect on July 19, aims to ensure that only legitimate and secure tokens are traded on exchanges.

Under the new law, all 29 registered crypto exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, must evaluate the over 600 crypto tokens listed on their platforms. The exchanges will need to follow stricter review guidelines for token listings and review existing listed tokens every six months to ensure they meet the new standards. Additionally, they must conduct maintenance reviews every three months.

The FSC has also proposed new regulatory guidelines for crypto transactions on exchanges, which are expected to come into force by July. The commission is working to create a new bureau that will focus exclusively on virtual assets and manage the industry's regulatory framework.

The new law imposes significant criminal punishments and fines for violations, including a fixed-term jail sentence of more than one year or a fine of three to five times the amount of illegal profits. The South Korean government has been actively working to regulate the cryptocurrency market, and this new law is a significant step towards ensuring user protection and preventing fraud.

The move is expected to have a significant impact on the cryptocurrency market in South Korea, as exchanges will need to be more diligent in their token listings and ensure that only secure and legitimate tokens are traded on their platforms. This will help to build trust and confidence in the market and prevent fraudulent activities.

In conclusion, South Korea's new law on virtual asset user protection is a significant step towards regulating the cryptocurrency market and ensuring user protection. The law requires crypto exchanges to regularly review their token listings and imposes significant penalties for violations. This move is expected to have a positive impact on the market and help to build trust and confidence in the industry.