Ahead of the Enforcement of the Specific Financial Information Act on Cryptocurrency Exchanges, 'Jabcoin' Cleanup
Many 2030 Coin Investors Say "It's a Real Betrayal... Lost All Investment Funds"
Cryptocurrency prices are displayed on the electronic board at the Bithumb Gangnam Center lounge in Gangnam-gu, Seoul. [Image source=Yonhap News]
[Asia Economy Reporter Han Seung-gon] "It’s just a total failure, what else can we do?" , "I got blindsided in the middle of the night."
Recently, as cryptocurrency exchanges have begun so-called 'junk coin' cleanups, voices of dissatisfaction have emerged among investors in their 20s and 30s who invested in these coins. In particular, some exchanges have either completely shut their markets or announced delisting (termination of trading support) late at night without warning, leading to complaints of feeling blindsided and lamentations that recovering the principal is practically impossible.
The reason exchanges are making such decisions is interpreted as being mindful of the registration requirements for virtual asset service providers under the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information. The Financial Services Commission recently announced a policy to prohibit exchanges from mediating or brokering the trading or exchange of virtual assets issued by themselves. From the exchanges’ perspective, filtering out so-called 'bad coins' can be seen as complying with the government’s policy and preparing for official exchange registration.
The problem lies with those who have already purchased coins that are subject to trading suspension. Coinbit announced on the night of the 15th at 10:02 PM in a notice titled 'Notice Regarding Virtual Asset Trading Support' that trading support for 8 coins would end and 28 coins would be designated as cautionary items. The coins subject to termination are Rex (LEX), IO (IO), Pantheon (PTO), UPT (UPT), Dex (DEX), Proto (PROTO), Dexter (DXR), and Next (NET), totaling 8 coins. All trading for these coins will end at 8 PM on the 23rd. Withdrawals will be possible until 8 PM on the 29th.
Investors expressed frustration. Kim, a company employee in his 30s, said, "Other exchanges are the same, but what good is it if you can withdraw?" and added, "They are already classified as delisted coins, and the prices keep falling." He continued, "I can’t even recover my investment; I’ve just lost all my money," expressing his anger. In fact, many of the coins decided for delisting plunged more than 80% compared to 24 hours earlier that morning.
Another investor in his 20s, Lee, also sighed. Lee said, "Junk coins are somewhat cheap, so I bought a lot of different ones, but they crashed overnight, and I just lost all my money." He added, "Junk coin companies claim to be sound, but when the exchanges kick them out, there’s nothing we can do."
Amid ongoing complaints from investors, Upbit designated 25 coins as cautionary items in bulk and removed 5 coins from the KRW market.
Among them, QuizTok (QTCON) issued an official statement saying, "We are currently compiling the amount of damage and cases of harm suffered by investors due to Upbit’s sudden delisting, and we prioritize protecting their voices and rights," and added, "We strongly protest Upbit’s unilateral delisting without just cause and procedure and will take a firm stance in response."
This conflict arises because cryptocurrency exchanges are currently suspending coin trading based on explanations such as 'internal standards not met' and 'investor protection' without legal grounds. The industry expresses concern that more coins will be delisted in the near future. Among investors in their 20s and 30s who have heavily invested in coins, there are calls for clear standards and some form of supplementary measures that allow for principal recovery.
Lee, a 30-something investor, said, "Efforts to ensure market soundness in the coin investment market are naturally welcome," but also expressed concern, "If policies are made too hastily according to government directives and various standards, there could be adverse effects."
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