South Korean financial regulators are reportedly debating whether companies should be required to obtain approval from authorities to list their digital currencies on domestic crypto exchanges, according to The Herald Business on Monday.
In South Korea, a proposed bill may be included in the upcoming Digital Asset Basic Act, which would require the country’s regulators to approve new token listings on crypto exchanges instead of the exchanges themselves, The Herald Business reported.
Though it is believed that this would reduce risks and losses for investors, there is debate among regulators regarding the suggestion.
After WEMIX, the native token of South Korean blockchain game maker Wemade Co., was delisted by the nation’s top four exchanges last week due to misreported circulation numbers of its crypto, developments in the country have followed.
A similar examination process takes place in Japan, where the Virtual and Crypto assets Exchange Association (JVCEA), a self-regulatory body that oversees local crypto exchanges, examines new crypto listings on Japanese exchanges.
It is believed that the JVCEA is planning to simplify the vetting process by the end of this month, so that tokens that were already listed in the local crypto market will no longer need to be examined.
South Korea’s Financial Services Commission (FSC) handles the review of new stock offerings in the country.