Fears of Mass Altcoin Delistings Spread in South Korea

South Korean crypto exchanges are facing mounting pressure to delist altcoins this year, following requests from financial authorities. According to a report by Business Post, there is a real danger that altcoins will be “delisted one after the other” in the coming weeks. Industry insiders fear a repeat of 2021 when major domestic exchanges removed numerous low-cap coins from their platforms.

With public scandals surrounding “scam coins” on the rise, regulators are urging exchanges to conduct listing audits. They emphasize checking coin project credentials regularly and placing underperforming tokens and projects lacking transparency on “cautionary” lists.

Altcoin Cull Anticipated

Experts now speculate that a significant number of altcoins may face delisting simultaneously, echoing the events of 2021. The regulatory Financial Supervisory Service (FSS) plans to introduce a set of “best practices” for exchanges to follow when making delisting decisions. These guidelines are expected to coincide with the launch of the Act on the Protection of Virtual Asset Users, scheduled for July 19. An unnamed crypto industry official stated that the financial authorities are preparing to implement these guidelines swiftly.

Market Reaction

The news has unsettled the market, leading to price drops for some lower-cap altcoins on major exchanges. However, exchanges like Upbit have reassured investors, emphasizing their existing maintenance review processes for crypto assets. High-cap coins with international credentials, such as XRP, Solana, and Cardano, are considered safe, while the FSS is likely to scrutinize lower-cap projects more closely.