South Korean Crypto Exchanges Listed 1,236 Altcoins and Delisted 430 as Investor Protection Concerns Grow

South Korea’s cryptocurrency market is facing renewed scrutiny after data showed a large number of altcoins were listed and subsequently removed from major exchanges over the past several years.

According to data obtained by Representative Park Sung-hoon of South Korea’s People Power Party, the country’s five major won-based cryptocurrency exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — collectively listed 1,236 altcoins, including duplicate listings across exchanges, from 2022 through the reporting period in 2026.

During the same period, 430 altcoins were delisted. The figures have intensified questions about whether cryptocurrency exchanges are applying sufficiently strict standards before allowing new digital assets onto their platforms.

Delisting Rates Vary Sharply Between Exchanges

The data reveals considerable differences among the five exchanges.

Gopax recorded the highest delisting-to-listing ratio. It listed 106 coins and removed 67, producing a ratio of 63.2%.

Coinone listed 337 cryptocurrencies and delisted 157, resulting in a 46.6% ratio.

Bithumb recorded 426 listings and 134 delistings, equivalent to 31.5%.

Korbit listed 148 coins and removed 30, producing a ratio of 20.3%.

Upbit had the lowest ratio among the five exchanges. It listed 219 coins and delisted 42, equivalent to 19.2%.

These figures do not necessarily mean that every delisted cryptocurrency was originally listed during the same period, because the reported delisting figures can also include assets listed before 2022. Nevertheless, the scale of removals has prompted concerns about the risks faced by altcoin investors.

38 Altcoins Survived Less Than One Year

One particularly notable finding was the number of cryptocurrencies that lost trading support shortly after being listed.

A total of 38 altcoins were delisted within one year of their listing.

Bithumb accounted for 16 of these cases, Coinone for 11, Gopax for five, Korbit for four and Upbit for two.

Such rapid delistings have fueled criticism that serious problems involving some projects may not have been identified during exchanges’ initial listing reviews.

For Upbit, the reported reasons for removing cryptocurrencies included 28 cases involving user harm, eight involving technology or security problems, two involving regulatory violations and two involving concerns over issuer credibility.

Altcoin Delistings Compared With KOSDAQ

The report also compared cryptocurrency exchange activity with South Korea’s KOSDAQ stock market.

During the corresponding period, 532 companies entered KOSDAQ while 76 were delisted for various reasons, including inadequate audit opinions.

The comparison suggests that the ratio of removals relative to new listings was substantially higher among the cryptocurrencies examined than among KOSDAQ-listed companies.

However, crypto assets and publicly listed companies operate under significantly different structures and regulatory frameworks, so the figures should not be interpreted as a direct like-for-like comparison of investment risk.

Still, the numbers highlight the relatively high turnover and uncertainty that can exist in the altcoin market.

Zero-Fee Trading Promotions Raise Additional Concerns

The report also examined whether aggressive fee promotions may encourage short-term speculative trading.

Korbit eliminated trading fees across its listed cryptocurrencies from October 2023 until February of the following year.

During the 133-day promotion, its average daily trading volume reportedly increased by 1,520.8%, reaching approximately 70.66 billion won, or about $51.4 million.

After the promotion ended, average daily trading volume declined by 57.4% to approximately 30.1 billion won, equivalent to about $21.9 million.

Korbit and Coinone have subsequently introduced zero-fee policies again, demonstrating how exchanges continue to compete aggressively for trading activity.

While lower fees can benefit traders, critics worry that temporary fee elimination may encourage rapid speculative activity rather than longer-term investment decisions.

South Korea's Crypto Exchange Industry Is Changing

Competition is occurring alongside broader changes in South Korea's Virtual Asset Service Provider market.

According to figures attributed to the Financial Services Commission's Korea Financial Intelligence Unit, South Korea had 29 registered Virtual Asset Service Providers when its registration framework began in 2021.

That number declined to 27 by the end of last year before returning to 29 following the addition of ABC Cloud Wallet and BitGo Korea.

The composition of the industry has changed more significantly.

The number of exchanges reportedly declined from 24 to 18, while wallet and custody providers increased from five to 11.

Smaller coin-market exchanges that were unable to obtain real-name verified deposit and withdrawal accounts also faced financial difficulties. They recorded combined operating losses of 15.1 billion won, approximately $11 million, during the second half of last year.

Calls for Stronger Investor Protection

Representative Park Sung-hoon called on financial authorities to introduce stronger measures designed to protect cryptocurrency investors.

The concern is that exchanges depend heavily on trading-fee revenue and therefore have incentives to attract trading activity. If listing competition becomes too aggressive, lower-quality cryptocurrency projects could potentially reach investors before sufficient risks are identified.

South Korea is also approaching another regulatory milestone. Existing Virtual Asset Service Providers are required to complete re-registration by November 20.

Strengthened financial requirements and scrutiny of major shareholders under revisions to South Korea's financial transaction reporting framework could influence how exchanges operate and potentially how they approach future cryptocurrency listings.

The latest figures underline a fundamental risk of altcoin investing: being listed on a major cryptocurrency exchange does not guarantee that an asset will continue trading there.

For investors, the high number of delistings reinforces the importance of evaluating a cryptocurrency project's technology, security, development activity, issuer credibility and regulatory risks rather than relying solely on an exchange listing as an indication of quality.

Key Facts
1,236 altcoins were listed across five major South Korean won-based exchanges during the period examined.
430 altcoins were delisted.
38 cryptocurrencies were removed within one year of being listed.
Gopax: 63.2% delisting-to-listing ratio.
Coinone: 46.6%.
Bithumb: 31.5%.
Korbit: 20.3%.
Upbit: 19.2%.
Korbit's zero-fee promotion coincided with a sharp increase in trading volume.
South Korean lawmakers are calling for stronger protections for cryptocurrency investors.