Upbit and Bithumb remove LRC due to serious compliance violations

Seoul, South Korea – March 14, 2025 – In an important regulatory move, Upbit and Bithumb, two of South Korea’s largest crypto exchanges, announce the impending delisting of Loopring ($LRC), shocking the digital asset community and raising serious questions about the sustainability of the project and the compliance standards of the exchange.

Loopring Delisting: Official Announcement and Schedule

Upbit and Bithumb released a joint statement confirming the removal of Loopring. $LRC Tokens from trading platforms. The delisting process will begin at 6:00 a.m. UTC on March 16, 2025. As a result, Upbit immediately suspended deposits on March 16, 2025. $LRCMeanwhile, Bithumb will suspend all trading services for the token. Both exchanges have specific withdrawal deadlines and encourage users to actively manage their assets. This decision follows several months of monitoring on both platforms. $LRC They are added to their watchlists. The exchange identified several open issues during this monitoring phase. Market analysts immediately noted the sharp decline in the market. $LRCTrading volume and price of on exchanges around the world after the announcement.

Verifying the main reasons for the delisting decision

Upbit’s public disclosure lists three main concerns that ultimately led to the delisting verdict. First, the highlighted exchange Inadequate disclosuresuggesting that the project failed to provide adequate and transparent information to investors and the exchange itself. Second, the reviewers identified the following points: Lack of substantiveness and sustainability of business operationsquestioning the long-term viability of the Loopring protocol’s economic model and development roadmap. Finally, Upbit says: insufficient progress About addressing these basic issues even though the project is on the warning list. A subsequent investigation confirmed that these concerns remained unresolved and final action was taken. This process reflects the broader and stricter regulatory environment in South Korea’s cryptocurrency sector.

Korean regulatory situation and exchange compliance

South Korean exchanges operate under strict guidelines from the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU). These regulations require strict due diligence on all listed tokens. Exchange must periodically evaluate projects based on criteria such as:

• Technical security and audit reports
• Team transparency and business registration
• Accuracy of distribution/supply information
• Marketing practices and user protection measures

Delisting $LRC It means vigorously enforcing these standards. This indicates a maturing market where exchanges prioritize regulatory compliance and user protection over huge trading volumes. This action is in line with global trends, as jurisdictions around the world increase oversight of cryptocurrency projects.

Understanding loop rings ($LRC) and its market position.

Loopring is an open-source protocol for building decentralized exchanges (DEX) and payment applications on the Ethereum blockchain. Increase throughput and reduce costs by bundling transactions off-chain using zkRollup technology. of $LRC Tokens serve as utility and governance assets for the network. Historically, $LRC It gained a lot of attention during the previous bull market, especially for its technical approach to scaling Ethereum. However, the competitive landscape for layer 2 scaling solutions has increased dramatically. Rivals such as Arbitrum, Optimism, and zkSync have captured significant market share and developer mindshare. This competitive pressure may be contributing to the perceived lack of progress noted by exchanges.

Immediate market impact and impact on investors

This announcement caused an immediate reaction in the market. $LRCexperienced double-digit percentage declines within hours across global exchanges. Trading volumes initially surged due to panic selling, but then sharply declined as liquidity became fragmented. To all investors holding $LRC With Upbit or Bithumb, the main action is to withdraw your tokens to a private wallet or another supported exchange before the deadline. Failure to do so may result in your assets being converted to Korean Won at potentially unfavorable rates or becoming inaccessible. This event is counterparty risk Specific to centralized exchange management. This highlights the importance of understanding the exchange’s terms and conditions and the non-guarantee nature of listings.

Historical Examples and Delisting Watchlist Process

This is not the first major delisting by a Korean exchange. Previous actions on tokens such as Waves (WAVES) and Qtum (QTUM) followed a similar pattern of identification, warning, and removal. The watchlist system itself is an important risk management tool. Exchanges typically review dozens of indicators, including:

• Development activity and GitHub commits
• Community participation and social indicators
• Legal and regulatory challenges
• Market performance and liquidity depth

Projects placed on this watchlist receive formal notification and often a 30-60 day remediation period. Delisting $LRC indicates that the exchange has determined that the project’s response during this period has been insufficient. Although this process is disruptive, it provides a structured mechanism to maintain platform integrity.

Broad signals for the cryptocurrency industry

The coordinated actions by Upbit and Bithumb send a strong message to all cryptocurrency projects. Exchanges, especially in regulated areas, are increasingly playing the role of gatekeepers. They demand higher standards for operational transparency, communication, and technological advancement. For the industry, this could accelerate the trend of consolidation, with only projects with solid foundations, active development, and clear compliance likely to survive on major platforms. It also highlights the growing divergence in regulatory approaches worldwide. Some regions have loose oversight and embrace innovation, while others, like South Korea, have introduced strict frameworks that can influence global standards.

conclusion

of Delisting of Loopring This by Upbit and Bithumb marks a pivotal moment in the maturation of the cryptocurrency market. This shows that the enforcement power of major exchanges and the sustainability standards of projects are increasing. While creating immediate issues, $LRC For holders, this measure ultimately reinforces the importance of transparency, continuous development, and regulatory compliance in the digital asset ecosystem. This event may also prompt other projects to reevaluate their compliance and communication strategies, potentially leading to a healthier and more robust market structure in the long run.

FAQ

Q1: What should I do if I grab it? $LRC Upbit or Bithumb?
must be withdrawn $LRC Send your tokens to a private wallet or another supported exchange. $LRC Deadline is March 16th at 6:00 AM (UTC). After this time, withdrawals will be invalidated.

Q2: intention $LRC Are you still trading on other exchanges?
Yes, delisting only affects Upbit and Bithumb. Loop ring ($LRC) will continue trading on other global exchanges such as Binance, Coinbase, and Kraken, although liquidity may be affected.

Q3: What exactly are the “deficiencies in disclosure” cited by Upbit?
Although details have not been made public, these deficiencies typically refer to insufficient reporting on project finances, team changes, technical risks, distribution data, and failure to meet exchange transparency requirements.

Q4: Does this mean the Loopring protocol is shutting down?
No, delisting is the decision of the exchange. The Loopring protocol will continue to operate on the Ethereum blockchain. However, this decision reflects serious concerns about the project’s business operations and progress.

Q5: How might this impact the future listing of other layer 2 tokens on Korean exchanges?
This action sets a precedent. Other Layer 2 and crypto projects seeking to list or remain listed on Korean exchanges are likely to face increased scrutiny regarding their development activities, business sustainability, and disclosure practices.