South Korea's financial regulator to limit listing of altcoins
The bull market for altcoins is a source of concern for the South Korean authorities. To protect fellow citizens from scams and possible financial pyramids, the banking association of the state will study alternative coins and identify those that can be traded on exchanges.
This decision is probably made after a significant increase in the price of altcoins. Over the past 24 hours, five coins from the top 10 cryptocurrencies have installed new ATH. Many other digital assets have also become more expensive. This is exactly what alarms regulators.
Altcoins are more financially attractive to South Korean investors than bitcoin. According to statistics, on large exchanges, for example on Upbit, their trading volume is 95.74 percent.
This is a very high indicator, indicating that investors prefer short-term returns in the presence of high risk. Many of them prefer to trade new coins. For example, SHIB.
The growth of such tokens can be unstable due to high volatility, and investors in such crypto may lose funds. Therefore, the authorities decided to test the altcoins and allow only safe digital assets to be traded.
Regulators are also confused by the fact that some exchanges add a large number of projects to the listing. According to the Central Bank of South Korea, the higher the number of cryptocurrencies traded on the stock exchange, the higher the risk. Therefore, it is necessary to reduce the volume of trading assets, leaving those that have proven themselves in the past.