Under Pressure from Financial Authorities
Since the beginning of June, a total of 37 altcoins have been delisted from 20 cryptocurrency exchanges in Korea which received the Information Security Management System (ISMS) certification.
Market watchers expect that the eviction of altcoins will continue not only at small and medium-sized exchanges but also at large exchanges that have real-name bank accounts such as Upbit, Bithumb and Coinone. Exchanges must have real-name bank accounts to broker Korean won-based transactions under the revised Act on Reporting and Using Specified Financial Transaction Information, which is scheduled to become effective in September. In evaluating exchanges, banks will give disadvantages to those with many altcoins.
Furthermore, the Financial Supervisory Service on June 14 requested exchanges to submit a list of coins that are highly risky or be delisted on a daily basis for the time being. Financial authorities began to conduct due diligence on exchanges on the day. As a consequence, exchanges are under pressure to delist altcoins.
However, some analysts say that the eviction of such altcoins will proceed gradually because the eviction of a large number of coins at once will have a big impact on the market. As a result, concerns are growing that investors in such altcoins may suffer huge financial losses.