As the implementation date of South Korea’s Virtual Asset User Protection Act draws near on July 19, 2025, major domestic cryptocurrency exchanges such as Upbit and Bithumb are accelerating their token listing processes. This surge in activity reflects a strategic response to stricter regulatory requirements expected under the new law, which will impose enhanced compliance standards for both new and existing listings.
The rush has created what industry observers are calling a “listing window period”—a final opportunity for projects to go live on top-tier Korean platforms before heightened scrutiny takes effect. With compliance deadlines looming, exchanges are fast-tracking reviews of pending tokens, reshaping their operational frameworks, and enhancing investor safeguards.
A Surge in Listings Before Regulatory Enforcement
Recent data analyzed by PANews through July 11, 2025, reveals a noticeable spike in listing activity across South Korea’s leading exchanges. Upbit, the country's largest crypto platform by trading volume, saw its monthly listing count peak in May with six new tokens added. Although the pace slowed slightly in June, the momentum resumed in early July with three additional listings within just two weeks.
Similarly, Bithumb—ranked second in trading volume—listed 12 tokens in January but slowed down in the following months. However, it ramped up efforts again in May and June, adding six and seven new tokens respectively. Notably, from May 28 to May 31 alone, Upbit and Bithumb collectively launched five tokens: ENS, AR, AUCTION, STG, and BEAMX, signaling a concentrated push ahead of the regulatory deadline.
Other key players like Coinone, Korbit, and Gopax also intensified their listing activities in June, collectively introducing 17 new digital assets. This synchronized acceleration suggests a coordinated industry-wide effort to finalize listings before the enforcement of the Virtual Asset User Protection Act reshapes market dynamics.
On July 11, Upbit listed Galxe (GAL), triggering a 15% surge in its price within 24 hours. Just two days earlier, the exchange introduced ENS/KRW trading pairs, causing ENS to spike over 18% briefly. On the same day, Bithumb announced new trading pairs for BRETT and TAIKO against the Korean won.
While these moves appear routine, insiders interpret them as signs of an emerging strategic listing window—a last chance for projects to gain visibility on regulated Korean exchanges before stricter rules take hold.
Compliance Preparations: From Policy Updates to Investor Education
Beyond listing surges, South Korean exchanges are overhauling internal systems and policies to align with the upcoming law. The Virtual Asset User Protection Act mandates stricter anti-fraud measures, transparent operations, and robust investor protection mechanisms—including mandatory insurance or reserve funds for security breaches.
Upbit: Strengthening Oversight and Financial Literacy
Upbit has implemented a Unfair Trade Monitoring System to detect and report suspicious activities to financial authorities systematically. In collaboration with the Financial Supervisory Service (FSS) and the Digital Asset Exchange Association (DAXA), Upbit is actively raising awareness about investment scams through educational content on YouTube and Instagram.
The exchange recently published easy-to-understand videos explaining complex topics such as spot Bitcoin and Ethereum ETFs, covering their history, types, market impact, and future outlook—all hosted on its Investor Protection Center channel.
These initiatives not only fulfill regulatory expectations but also position Upbit as a leader in investor education within the region.
Bithumb: Enhancing Security and Incentivizing Accountability
Bithumb has revised its service terms to comply with the new law, clarifying definitions around virtual assets, profits, and abnormal trading behaviors. It removed outdated sections like “content services” and now explicitly cites legal regulations as the basis for service usage rights.
To further deter misconduct, Bithumb introduced a 300 million KRW reward program for whistleblowers reporting unfair trading practices—the first of its kind in South Korea. Rewards are paid upon confirmation via disciplinary action or court validation, incentivizing transparency and accountability.
Additionally, Bithumb has strengthened user fund protection by enhancing cold wallet management protocols and expanding its team of compliance specialists.
Other Exchanges Step Up Safeguards
- Korbit now separates custodial wallets from user-held assets and manages cold wallets using offline signature approvals.
- Gopax offers comprehensive educational resources—from basic terminology to detailed research reports—to empower informed decision-making.
- Coinone centralizes all services within its native wallet ecosystem and enhances monitoring for suspicious withdrawal attempts.
These structural upgrades reflect a broader shift toward institutional-grade security and operational integrity across the Korean crypto landscape.
Insurance Sector Responds with New Virtual Asset Products
Anticipating legal obligations under the new law, South Korea’s insurance industry is developing specialized products tailored for virtual asset operators. According to industry sources, Korea Reinsurance Corporation and five to six property insurers have been working since February 2025—approximately five months—to launch virtual asset business liability insurance.
Once implemented, operators will be required to either secure insurance coverage or maintain equivalent reserve funds to compensate users in cases of hacking, system failures, or other technological incidents.
Many crypto firms have already set aside reserves in anticipation, while formal insurance solutions are expected to roll out shortly after the law takes effect. This development marks a significant step toward legitimizing digital asset operations within traditional financial frameworks.
👉 Learn how emerging regulations are shaping the future of secure crypto investments worldwide.
Key Takeaways: Why This Matters for Global Markets
The coordinated actions of South Korea’s major exchanges highlight a pivotal moment in crypto regulation:
- Regulatory clarity drives proactive compliance: Exchanges aren’t waiting for enforcement—they’re adapting now.
- Investor protection is becoming central: From education to insurance, user safety is no longer optional.
- Listing speed reflects market strategy: The “window period” phenomenon may become a recurring pattern in regulated jurisdictions.
As global regulators look to South Korea as a model for balanced oversight, these developments could influence policy approaches in Japan, Singapore, and even parts of Europe.
Frequently Asked Questions (FAQ)
Q: What is the Virtual Asset User Protection Act?
A: It’s a South Korean law effective July 19, 2025, designed to protect crypto investors by mandating transparency, fair trading practices, cybersecurity measures, and insurance or reserve requirements for exchanges.
Q: Why are exchanges rushing to list tokens now?
A: Due to anticipated stricter review processes post-implementation, exchanges are clearing backlogs during this transitional “window period” before compliance costs and risks increase.
Q: Will existing tokens be delisted?
A: Regulators have clarified they won’t directly intervene in listing decisions. However, exchanges may voluntarily delist non-compliant projects to meet due diligence standards.
Q: Are Korean exchanges becoming more secure?
A: Yes. Platforms like Upbit and Bithumb are adopting advanced monitoring systems, cold storage protocols, and third-party collaborations to enhance security and trust.
Q: How does this affect foreign projects seeking listings?
A: Foreign projects may face longer审核 timelines and higher compliance thresholds after July 19, making pre-deadline listings more valuable.
Q: Is insurance mandatory for crypto firms in South Korea?
A: Under the new law, firms must either obtain liability insurance or establish equivalent reserve funds to cover potential losses from hacks or technical failures.
Final Thoughts: A New Era of Institutional Crypto Trading
South Korea’s evolving regulatory environment is transforming its crypto market into one of the most structured and investor-friendly ecosystems globally. The current wave of listings, policy updates, and security enhancements underscores a maturing industry where innovation coexists with accountability.
For developers, investors, and regulators alike, this moment offers valuable lessons in balancing growth with governance—a blueprint likely to inspire similar frameworks worldwide.