Various types of digital currencies have been delisted at several locally operating South Korean cryptocurrency trade and exchange platforms. Strict regulations were introduced by the South Korean Government and in order to ensure compliance with these rules, crypto platforms have delisted those coins which potentially cause high risks. The trading of some of these highly risky coins has been suspended temporarily while in some cases trading has been suspended permanently.
The South Korean Government in Seoul had recently introduced a new set of rules and regulations regarding cryptocurrencies. The rules were to be implemented and applicable to crypto traders as well as cryptocurrency trade and exchange platforms. Although the crypto industry did have some objections with regard to the rules, however, more or less the industry agreed to rules.
While the date of implementation is reaching quickly, it has been seen that various platforms started to delist certain cryptocurrencies. According to the crypto exchanges, they are forced to delist certain digital currencies because of two reasons. Firstly, the currencies which have been listed are usually those which have higher values. Secondly, because they are of high value, therefore, they post potentially more risks than the cheaper valued cryptocurrencies.
It has been further informed by these exchanges that in some cases trading of certain digital assets has been suspended on a temporary basis. However, the trading of high-valued cryptocurrencies has been permanently closed until further instructions. The customers of the exchanges have been duly notified about the change through official emails. In addition, customer notice has been placed upon the websites’ homepage for the information of the customer. Even at the time of log into their accounts, a pop message will appear telling the customers about the change.
Similarly, further emails containing warnings have also been addressed to the customers about the risk and danger. They have been asked to trade very carefully if the digital currencies are high valued or that they possess high risks.
It was reported by the South Korean regulator that at least 20 exchanges had already acquired Information Security Management System licenses. Approximately 11 out of these 20 exchanges are the ones that have applied the policy of delisting high valued and risky cryptocurrencies. These exchanges include the names of some of the country’s biggest exchanges.
For instance, firms like Upbit are one of them which has delisted maro, solve.care, paycoin, quiztok, and observer. The next is Huobi Korea which too has delisted its very own crypto token. While at least 8 specific cryptocurrencies’ trading has been suspended by Coinbit. In addition, 28 tradable currencies at Coinbit too have landed on the warning list. Whether their trade will either be suspended temporarily or permanently or whether any suspension will take place or not, is not confirmed yet.
Meanwhile, every crypto trading firm would be required to obtain this Information Security Management System license. In the absence of this license, no firm will be allowed to render any services nor will it be allowed to carry on business.