The cryptocurrency investment industry was in turmoil when Upbit, a domestic cryptocurrency exchange, designated 25 cryptocurrencies as important items on the 11th.
In order to protect investors, Upbit has been monitoring the technology and liquidity (cryptocurrency trading volume) of the project (cryptocurrency developer) since 2019, designating cryptocurrencies that lack capability as a significant item, and delisting them. However, this is the first time that more than 20 cryptocurrencies have been designated as significant stocks in a single day.
An Upbit official said, “The announcement was made as part of the designation of a significant item that has been carried out so far.” “According to objective monitoring, we have designated a cryptocurrency that lacks (capacity) as a significant item.” position. Some criticize Upbit for ‘striking out ants (investors)’, and analysts say that the decision was not made after the financial authorities took notice.
◇Upbit removes 5 types of cryptocurrency market pairs + 25 types of significant items
Upbit announced on the 11th that it will remove a total of five cryptocurrencies (QuizTalk, Paycoin, Maro, Observer, and Solvecare) from the KRW market fair from 12:00 noon on the 18th. As a result of this measure, the five types of cryptocurrencies will not be able to be traded in KRW within Upbit after 12:00 noon on the 18th. However, all five types can continue to be traded on the Upbit Bitcoin market.
On the same day, Upbit designated 25 cryptocurrencies as significant stocks through an additional notice. 25 types are ΔKomodo ΔAddX ΔLBR YCredit ΔIgnis ΔDmarket ΔEinsteinium ΔTwelve Ships ΔLambda ΔEndor ΔPixel ΔPica ΔRedcoin ΔRingX ΔByte Token ΔItum ΔSyscoin Δ Basic ΔNXT ΔBFT Token ΔNuclear Vision ΔFusion ΔFlian ΔRipio Credit Network ΔProfi ΔAragon.
25 cryptocurrencies designated as significant items are reviewed for a week before final delisting is decided. Projects that faithfully responded to Upbit’s request to submit additional data can avoid delisting, but looking at previous cases, the majority of projects selected as significant items went through the process of delisting.
Immediately after Upbit’s announcement was posted, investors sold out on fear that their cryptocurrencies could be delisted. Quiz Talk, which was traded at 68 won (high price) on the 11th, the day of the actual Upbit announcement, fell 70% on the 12th and traded at 20 won (low price). Paycoin, which was traded at 1210 won (high) on the 11th, sank to 468 won (low), down 61% on the 12th.
Cryptocurrency developers who were hit by a direct hit immediately reacted. In a statement, QuizTalk said, “QuizTalk is currently counting the amount of damage and damages suffered by investors due to the abrupt delisting of Upbit. We will strongly protest and take strong measures.”
Danal Fintech, the developer of paycoin, also said, “Without prior notice or consultation, it was a sudden action (removal of the KRW market pair) 30 minutes before the deadline for requesting consulting for acceptance of a report submitted to the financial authorities at 6 pm on the same day.” There will be no major disruption to our business.”
◇Even the same industry expresses embarrassment, “I do not understand the decision of Upbit”
Regarding Upbit’s announcement, industry insiders agree that it is an ’embarrassing decision’. ‘Designation of investment-significant items’ is a matter closely related to ‘delisting’.
In particular, among the 25 cryptocurrencies that Upbit has designated as important investment items, 20 are unlisted cryptocurrencies that are not listed on Bithumb, Coinone, or Korbit, which are classified as large exchanges. There are comments This is because Upbit users who have delisted cryptocurrencies cannot move their assets to another exchange wallet.
In response, some argue that the financial authorities might not have acted in the fact that Upbit’s announcement was made 30 minutes before the deadline for filing a written application for ‘exchange site consulting’ from the Financial Intelligence Unit (FIU) of the Financial Services Commission.
An official from a domestic cryptocurrency exchange, who requested anonymity, said, “The financial authorities will have a will to capture the entire trading industry through Upbit, the oldest of the exchanges.” “The financial authorities will only trade a small number of cryptocurrencies in the won market. “There is a saying in the industry that they should have taken action to do it,” he said.
He added, “If other cryptocurrency exchanges decide to delist cryptocurrencies one after another following Upbit, a ‘chaos’ will begin.”
However, there is an opinion that the financial authorities accustomed to the investment ecosystem would not have made a decision that would cause a big ripple. The Financial Supervisory Service notified 20 cryptocurrency exchanges that acquired ISMS certification on the 14th, after Upbit’s notice was posted, saying, “From the 7th to the 16th, the items that have been delisted or will be designated as delisted. Please submit a list of coins.”
Regarding this, a FSS official explained, “We decided that the issue of delisting cryptocurrencies could continue to arise, so we requested data to understand the situation.” It is too early to judge that Upbit’s action was due to sanctions from the financial authorities.
◇ ‘Super strong water’ Upbit seems to take preemptive measures to enforce the revised special law
Upbit’s ‘super strong’ is analyzed as the position that it will take preemptive measures as the No. 1 trader in Korea.
With the enforcement of the amendment to the Act on the Reporting and Use of Specific Financial Transaction Information (Special Act) on March 25, the obligation to prevent money laundering of cryptocurrencies (virtual assets) has been strengthened.
In order to conduct cryptocurrency trading business, related businesses such as cryptocurrency exchanges must submit a business registration form to the Financial Intelligence Service by September 24. On the 28th of last month, the government announced that it would strengthen the management and supervision of virtual asset operators from September 25, when the grace period for the amendment was over.
An official from the domestic investment industry said, “With the implementation of the revised Special Act, the financial authorities have no choice but to foretell strong management in a situation where banks are at great risk.” It seems to have started. It shows confidence that it will survive under the supervision of the financial authorities.”
However, some experts criticized Upbit’s actions as irresponsible. Kim Hyung-joong, a professor at Korea University’s Graduate School of Information Security, said, “Delisting should be left to the market, not artificial. There is invisible pressure from the exchange’s point of view, so selection of companies (cryptocurrency) is taking place. This is not a desirable phenomenon “he emphasized.
He continued, “The reasons for the designation of the 25 cryptocurrencies that Upbit has designated as significant are the same. Just as cryptocurrencies were selected and listed, we must act responsibly when abolished,” he said. The government should not exercise the influence of delisting on cryptocurrency exchanges,” he added.
Regarding the controversy over the designation of significant items for investment this time, an Upbit official said, “It is only the designation of items of concern for investment, which has been done in the past, and not the quantity.” “(Designation of items of concern for investment) has an internal policy, and it is As a result of objective monitoring, significant items have been designated for cryptocurrencies lacking (capacity), and developers who faithfully submitted data will be terminated from the list of significant investment items.”
Regarding the removal of the five cryptocurrencies from the KRW market, he added, “It was decided to maintain the Bitcoin market in consideration of the business growth potential of these projects and customer interest.”
