South Korean crypto investors are hitting the panic button as the implementation of the Virtual Asset User Protection Act (Law) approaches. Local media reports suggest the Law, set to kick in next month, has sparked fears of altcoin delistings, leading to a wave of selling.

The trigger? News that financial authorities will be reviewing a whopping 600 domestic virtual assets every three months, starting next month. Coins failing to meet listing standards could be suspended from trading. Analysts say this news sparked a frenzy of "panic selling" as investors dumped their assets out of fear.

Social media has been abuzz with speculation, with 16 altcoins labeled "potential June delistings" across various coin communities. This resulted in nearly half the KRW market experiencing price drops between 10% and 20%.

However, the South Korean government is stepping in to calm the storm. They've clarified that they're not directly involved in reviewing virtual asset transactions. The Financial Supervisory Service (FSS) clarifies that the information was submitted to the National Assembly during the Law's implementation. The Assembly requested the FSS's help in establishing unified listing standards for exchanges.

The FSS emphasizes their role is overseeing virtual asset operators, not individual holdings. They participate in creating best practices, but official announcements will come from stock exchanges and DAXA.