ChainX’s sudden coin removal and phase-out raises panic about business closure

2021.07.21 14:04:45 | 2021.07.21 14:05:39

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ChainX, a cryptocurrency exchange in Korea, abruptly removed nearly 60 coins around midnight and ordered investors to complete deposit withdrawals by next month, stoking panic about business shutdown.

The crypto exchange suspended trading of 57 coins including LOOM and MXC as of 11 p.m. on July 16, 2021 and posted a notification about the suspension 16 minutes later via its website. The exchange had placed the coins under delisting review on July 7 without specifying plan of removal.

The exchange also on late night last Friday announced it will stop accepting deposits in Korean won and requested all account holders in local money to withdraw by August 16.

ChainX is a small-scale cryptocurrency with its latest transaction volume compiled at less than 5 billion won ($4.3 million).

The sudden move has raised panic about the exchange going out of business.

The cryptocurrency market in Korean is undergoing a massive restructuring under the local financial authorities’ move to tighten its control to protect investors from speculative trading activities. The exchanges are required to have account holders verified by established banks and its trade system certified for security. Otherwise, they could be forced to go out of business.

The virtual asset valuation institute under the Korea Society of Computer Information recently conducted an assessment over seven digital coins, of which six had been cited with caution.

By Han Sang-hun and Cho Jeehyun

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