The Korea Digital Asset Exchange Association has assigned trade warnings and terminated support for ORB and TEMCO tokens, stating both projects have violated the Virtual Asset User Protection Act that may impact on their asset values.
South Korean crypto exchange Bithumb published a notice informing users of the status change for Orbs and Temco tokens, according to new information from the Korea Digital Asset Exchange Association, also known as DAXA.
Both assets are now classified under “trading caution items” effective Nov. 6, 2024 due to both entities violating the Enforcement Decree of the Virtual Asset User Protection Act.
The status change means that the crypto exchange will halt trading support by stopping deposits for ORB(ORBS) and TEMCO tokens. Bithumb will send out a notice for the extension of the suspension and/or the end of transaction support by the third week of November, specifically from the 18th until the 22nd of November.
“DAXA may jointly designate trading caution items and terminate trading support for investor protection. Therefore, please pay special attention when investing in related virtual assets,” wrote Bithumb.
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According to the notice, the exchange claims that layer3 blockchain Orbs gave false information about important matters that impact the cryptocurrency’s value on the market. Apart from that, it is also noted that Orbs’ business has been deemed “unclear” throughout the whole process.
“In addition, there is no community through which holders of the virtual asset can communicate, and so it has been designated as a trading-cautionary stock,” said Bithumb.
Meanwhile, supply chain platform Temco is said to have “arbitrarily changed” important information without prior notice to the public. Temco has also allegedly failed to be transparent about certain matters that could potentially impact the value of their digital asset.
On Oct. 24, a report found that more than a dozen crypto exchanges in South Korea have stopped operating in 2024 due to the country’s new policy, Virtual Asset User Protection Act.
As a result, nearly 34,000 crypto owners are trying to access their assets worth around 17.8 billion won ($12.8 million), broken down into 1.41 billion won in cashable assets and 16.4 billion won in crypto.
Read more: Millions left in limbo as Korean crypto exchanges shut down amid regulations: report