The popular Korean exchange Upbit has delisted 5 cryptocurrencies and flagged another 25 coins under “Investment Warning”.
The reason for the removal are new regulations
On social media, Korean traders are calling it “Bloody Friday” because many of the popular cryptocurrencies listed on Upbit have been removed. The delisted coins aren’t major cryptocurrencies like Bitcoin, Ethereum or XRP, but alternative cryptocurrencies that are mostly traded in Korea. The reason for the removal are regulations that penalize exchanges for having too many coins on their exchange.
The cryptocurrencies that have been removed from the exchange are MARO, PCI, OBSR, SOLVE and QTCON. What these coins have in common is that they were very popular in South Korea, but did not receive much attention in other countries. It is very likely that UpBit decided to remove these coins because they are considered less established and could be considered riskier than the coins UpBit decided to keep.
There is a good chance more exchanges will follow
There is a good chance that other Korean exchanges will follow and also delist similar cryptocurrencies to avoid being penalized by the banks. The reason why banks have decided to penalize exchanges for having too many cryptocurrencies is because of a warning released by the central bank stating that if Korean exchanges continue to list highly speculative assets, they will create a higher risk for Korean banks than if they only list established cryptocurrencies.