Cryptocurrency ‘Spring Cleaning’ Announced Late In The Evening

Cryptocurrency exchanges de-list or issue investment warnings on unverified altcoins, embarking on a digital currency “spring cleaning.”

Cryptocurrency exchanges seem to be dropping bad coins to meet the requirements for their registration to financial authorities by September 24 under the Act on Reporting and Using Specified Financial Transaction Information.

As claimed by the cryptocurrency industry, on Wednesday, 11 of 20 crypto-exchanges with an information security management system (ISMS) certification communicated; the de-listing of or issued transaction warnings on coins since exchanges announced the pan-governmental cryptocurrency transaction management plans on May 28.

UPbit, with the most significant transaction volume; de-listed five cryptocurrencies in the Korean Won market and issued warnings on 25 coins on Friday. Coinbit stated on Tuesday at 10 p.m. that it will de-list eight cryptocurrencies and give alerts on 28 coins.

Additionally, Huobi Korea and GDAC de-listed coins named after each exchange; along with other small- to medium-sized exchanges’ efforts to clean their coins.

De-Listing Requirements

Nevertheless, commotion is increasing among investors as there is no clear legal basis for de-listing cryptocurrencies. It seems that there are really no standards or set policies on the requirement for removing digital currency from circulation. Most exchanges point to unfulfilled internal requirements or investor protection as the grounds for de-listing. It is also doubtful that some crypto exchanges create such statements late in the evening. The de-listing or warning-issued coins drop between 70 to 80 percent in price overnight while investors cannot respond.

The industry concedes that the de-listing movement will prevail for a while. A member of a crypto exchange stated that:

“Filtering unofficial altcoins is an issue directly related to the continuation of a cryptocurrency exchange. We are making de-listing decisions based on foreign exchanges’ examples.”

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