South Korean Exchanges Delist Loom Network Over Compliance Issues

South Korean cryptocurrency exchanges Upbit and Bithumb, along with other centralised exchanges (CEXs) in the region, have announced the termination of trading for Loom Network (LOOM).

The decision comes after Loom Network was removed from the DAXA (Korea Digital Asset Exchange Association) membership. Following a thorough review of the foundation's public disclosures, as well as the authenticity and sustainability of its operations, it was determined that LOOM did not meet the criteria to maintain trading support. The exchanges cited this as the reason for their decision to cease trading support for LOOM.

The tentative date and time for the termination of LOOM trading (buy/sell) have been set for May 7, 2025, at 15:00. This move underscores the exchanges' commitment to ensuring that only cryptocurrencies meeting stringent criteria are available for trading on their platforms. The decision to delist LOOM is likely to have significant implications for investors and traders who have been involved with the cryptocurrency.

This development highlights the importance of regulatory compliance and operational transparency in the cryptocurrency industry. Exchanges are increasingly scrutinizing the cryptocurrencies they list, ensuring that they adhere to regulatory standards and maintain sustainable operations. The delisting of LOOM by major South Korean exchanges serves as a reminder to other cryptocurrencies of the need to meet these criteria to avoid similar actions in the future.

Investors and traders who hold LOOM will need to consider their options in light of this announcement. They may choose to sell their holdings before the May 7 deadline or explore alternative platforms that continue to support LOOM trading. The delisting also raises questions about the future of LOOM and its ability to regain compliance with exchange requirements.

Overall, the termination of LOOM trading by Upbit, Bithumb, and other Korean CEXs reflects a broader trend in the cryptocurrency industry towards greater regulatory oversight and operational transparency. As exchanges continue to enforce stricter criteria for listing and delisting cryptocurrencies, it is essential for projects to demonstrate compliance and sustainability to maintain their presence on major trading platforms.