Bithumb and Coinone, two leading South Korean cryptocurrency exchanges, announced a coordinated delisting of the AI16Z token, scheduled to take effect at 6:00 a.m. UTC on February 9, 2025. The decision followed months of monitoring and formal compliance procedures by both platforms, which concluded that the project repeatedly failed to meet listing maintenance standards. According to exchange statements, the primary concern was the project’s lack of timely disclosure about material protocol and tokenomics changes, together with insufficiently documented governance processes.
Overview of the Delisting
The exchanges placed AI16Z on watchlists in late 2024 and then escalated to formal delisting after remediation efforts did not resolve the identified issues. Bithumb and Coinone said the project’s disclosure timelines and governance transparency did not satisfy their ongoing listing requirements, so standard delisting protocols were activated. This coordinated action reflects identical legal and compliance responsibilities that both exchanges operate under in South Korea.
Timeline of Compliance Failures
According to the exchanges, AI16Z showed persistent problems with information disclosure that began to surface in mid-2024 and resulted in a watchlist placement in October 2024. Over subsequent remediation periods the project failed to provide the timely updates and documented decision rationales the exchanges required, which prompted escalations through formal review channels. After the remediation windows concluded without satisfactory corrections, Bithumb and Coinone moved forward with suspension and delisting procedures.
Regulatory Context in South Korea
South Korea implemented the Virtual Asset User Protection Act in July 2024, creating clear obligations for exchanges and token issuers around disclosure, governance, and investor protection. Under this framework, exchanges are responsible for monitoring listed assets and taking corrective action when projects breach listing standards, and the Financial Services Commission provides regulatory oversight. That shared legal environment explains why Bithumb and Coinone coordinated their enforcement in this case.
Analysis of AI16Z Project Failures
The exchanges pointed to two central failings: delayed disclosure of material changes to protocol and tokenomics, and a lack of documented governance procedures that would allow external assessment. These shortcomings meant the project could not meet the exchanges’ continuous-compliance requirements, which go beyond initial listing checks. The accumulation of these issues over time justified the formal removal process under exchange rules.
Market Impact and Investor Procedures
The announcement immediately affected AI16Z’s market performance, with exchanges noting increased volatility after the delisting notice. Trading is set to be suspended at the announced time, after which both platforms provide a withdrawal period typically lasting 30 days so holders can move tokens off-exchange. After that withdrawal window closes, the token will no longer be accessible through the exchange interfaces, although holders may still use external wallets or other platforms that support the token.
Expert Perspectives on Regulation
Professor Kim Min-ji of Seoul National University’s Blockchain Research Center commented on South Korea’s regulatory stance, highlighting that the country emphasizes preventive regulation through exchange accountability. This approach focuses on continuous monitoring and automatic enforcement mechanisms, prioritizing investor protection over reactive measures. The exchanges’ multi-stage, documented delisting process illustrates that emphasis in practice.
Why this matters (Почему это важно)
For miners and small holders, the delisting shows that South Korean exchanges will remove tokens that do not keep investors properly informed, even after initial listing. That means project communication and transparent governance matter for the long-term tradability of any token you hold, especially on regulated platforms. Because exchanges provide a defined withdrawal window, holders have a limited, predictable period to act rather than facing immediate loss of access.
What to do? (Что делать?)
If you hold AI16Z on an exchange in Russia or elsewhere, follow these practical steps during the withdrawal period:
- Check your exchange account and confirm the exact suspension time and withdrawal deadline, then plan transfers accordingly.
- If you transfer tokens, use a wallet or another platform that explicitly supports AI16Z and verify the receiving address carefully before sending.
- Keep records of your transactions and any exchange notices; these may be important if disputes arise or for future reference regarding asset status.
For background on similar exchange actions and withdrawal procedures, see the coverage of Bithumb delisting BOA and the APM Coin delisting. For a Coinone example, review the Coinone delisting MASA article to see how timelines and withdrawal instructions were handled in a recent case.
