Upbit Gains Upper Hand in Legal Fight Against Delisted Altcoins Issuers

  • 12 August 2021, Thursday, 01:00
Upbit Gains Upper Hand in Legal Fight Against Delisted Altcoins Issuers
Source: Adobe/burdun

The market-leading South Korean crypto exchange Upbit has found itself involved in a series of legal struggles with the issuers of some of the tokens it delisted earlier this summer.

As previously reported, the nation’s biggest trading platforms went on a series of unexpected, late-night altcoin culls – with some analysts suggesting they have been trying to appease regulators with their zeal for removing questionable tokens.

But others suggest that they have been going overboard with their efforts – removing perfectly well-performing, above-board tokens along with projects exhibiting lower levels of activity. They claim that Upbit and its rivals have failed to sort the wheat from the chaff in their hurry to slim down their coin offerings.

The regulatory Financial Services Commission itself appeared to have been blindsided by the alacrity of the delistings.

Per KBS, Upbit has most recently found itself locking horns with the Pica Project, the operator of the pica token and a digital asset-powered art platform.

Pica was one of the tokens Upbit removed in a wider cull back in mid-June, giving investors just a week to remove their holdings from the trading platform.

The Pica Project immediately followed up the announcement by applying for an injunction against Dunamu, the Upbit operator. Pica had asked a branch of the Seoul District Court to order Upbit to suspend its decision to terminate support for its token.

But it appears that Upbit has won this battle, for the time being, ruling against the injunction request this week.

Dunamu was quoted as stating that the court had “recognized the need for policy to grant discretion to exchanges’ decisions to continue offering transaction support.”

The firm also noted that the court had ruled that it was “necessary to respect that” exchanges were free to use their own “judgment” in such matters unless “special circumstances” arose.

Dunamu has had to make regular visits to the Seoul District Court in recent weeks, with other token operators also attempting to lodge similar injunctions since June. The firm has also had to fight against an injunction request from the Go Money 2 token (GOM2) operator AnimalGo.

The rate of delistings has slowed somewhat since June, but investors have complained on web forums, stating that there is “no legal basis for delisting” and that many of the delistings were made in an “arbitrary” manner. _ Learn more: - Smaller South Korean Crypto Exchanges Begin to Shutdown, Suspend Services - Crypto Exchange Korbit Charged for ‘Excessive Customer Data Collection’ - South Korean Customs Officers Close Net on ‘Kimchi Premium’ Offenders

Source: cryptonews.com