South Korean crypto exchanges face scrutiny over high altcoin delisting rates

South Korean cryptocurrency exchanges are facing scrutiny over rapid altcoin listings and high delisting rates. Data released by Representative Park Seong-hoon of the National Assembly's Political Affairs Committee reveals that between 2022 and July 2024, the five major won-based exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—listed a total of 1,236 altcoins.

During the same period, 430 of these assets had their trading support terminated. Notably, 38 altcoins were delisted within just one year of their initial listing. Gopax recorded the highest delisting rate at 63.2%, followed by Coinone at 46.6%, Bithumb at 31.5%, Korbit at 20.3%, and Upbit at 19.2%.

Critics argue that intense competition for trading volume, including zero-fee marketing events, has led exchanges to prioritize profit over rigorous listing audits and investor protection. Representative Park called for strengthened financial oversight to prevent a ‘passing the bomb’ scenario where exchanges profit while investors bear the losses.