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Is the Decline of Alternative Coins Due to This? Here’s the…
Is the Decline of Alternative Coins Due to This? Here’s the Significant Question
During a substantial downturn in the cryptocurrency market, an intriguing hypothesis emerged regarding the decline of alternative coins.
Writer:
Mete Demiralp
18.06.2024 – 16:03
Update:
12 seconds ago
0
Reports from South Korean media indicated that the imminent enforcement of the Virtual Asset User Protection Act (Virtual Asset Law) has instigated a frenzy of selling in the cryptocurrency market.
According to local reports, speculations that certain altcoins may face delisting as a result of the law, set to be enacted next month, have caused prices to plummet.
The panic selling was prompted by news that regulatory bodies will conduct assessments of 600 domestic virtual assets every quarter, starting next month. Coins failing to meet the listing criteria will be suspended from trading. This development triggered a wave of ‘panic selling’, as investors divested their assets out of apprehension, as per analysts.
Today, 16 altcoins were singled out as ‘candidates for listing and delisting in June’ on various social media platforms, including cryptocurrency communities. Consequently, nearly half of the coins listed on the market saw their prices decline by 10% to 20%.
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However, the South Korean government has clarified that it is not directly involved in scrutinizing virtual asset transactions. The Virtual Asset Supervision Bureau of the Financial Supervisory Service clarified that the information in question was supplementary data submitted to the National Assembly during the enactment of the Virtual Asset Law. The National Assembly had requested the Financial Supervisory Service to assist in formulating unified listing criteria for exchanges.
The Bureau emphasized that while they contribute to best practices, official announcements will be made by the exchanges and DAXA. They underscored that financial authorities oversee virtual asset operators and do not directly evaluate coins.
*This is not financial advice.
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