South Korean crypto exchanges are considering deregistering numerous altcoins as financial regulators intensify scrutiny of the altcoin market.

According to Daehan Kyungjae, the new Virtual Asset User Protection Act will soon come into effect, potentially nullifying 600 coins currently listed on online asset exchanges. This regulatory move aims to address issues related to crypto asset transactions more effectively.

Under the new act, fiat KRW trading platforms such as Upbit, Bithumb, Coinone, Korbit, and Gopax, among others, will be required to fully comply with the regulations. An additional 20 exchanges, which do not have KRW trade certificates and only offer crypto-to-crypto pairs, will also be affected.

South Korean regulators will mandate 29 platforms to thoroughly review their stance on deregistering the 600 altcoins or continue supporting them. They will also be required to conduct quarterly reviews of the coins listed on their platforms, taking all necessary precautions.

The new law will make it mandatory for each exchange to establish a center for registering and deregistering coins, responsible for evaluating safety, reliability, and adherence to regulatory standards.

Key issues to be addressed include social credit, development, disclosure of relevant information, and transparency.