South Korea’s largest cryptocurrency exchange, Upbit, has become a platform known for its altcoin listings. While Upbit’s listings usually create significant price increases in the relevant altcoins, the exchange’s ability to add new meme coin has now become limited due to strict regulations in South Korea. The new regulations that have come into effect recently, in particular, require exchanges to be more careful.
A meme coin must be listed on another platform for two years
According to these regulations, a meme coin must be traded on another platform for at least two years in order to be listed. This has narrowed down Upbit’s options for listing new meme coins. Upbit currently has only three meme coins to list: Pepecoin (PEPE), Bonk (BONK), and Brett (BRETT). These three tokens are among the only meme coins that meet the requirements of the regulations.
Upbit recently attracted attention by listing two memecoins in a row. Bonk was listed on October 22nd due to popular demand, while PEPE and BRETT were added to the platform with USDT trading pairs in August after completing their two-year trading history. These listings were made in line with South Korea’s new regulations. The Virtual Asset Protection Act, which came into force in the country, imposes restrictions on unknown teams or projects without a roadmap. Such projects must be traded for two years and listed on a major crypto exchange before being listed on exchanges.
Short-term rallies draw attention
Upbit’s meme coin listing strategy in line with these regulations aims to protect investors. The regulations aim to protect investors from fraud cases and not be harmed by sudden price movements in the markets. At this point, regulatory bodies are implementing strict controls to ensure that exchanges list more reliable assets. Highly volatile assets, such as memecoins, are especially at the center of these controls.
However, listing a token on Upbit does not always mean a long-term price increase. Some South Korean investors state that there have been short-term rallies after the listing of memecoins, but declines may follow. For example, MEW (Cat in a Dogs World) experienced a rapid rise after its listing on Upbit, but then a significant drop in its price was observed. Similarly, BONK rose to $ 0.000025 after its listing on Upbit, but quickly fell back to $ 0.000022.
Prices are vulnerable to volatility
Upbit’s more cautious stance does not mean that the platform considers the tokens on the list as a long-term investment. The exchange carefully lists meme coins considering their volatile nature, while trying to warn investors about potential risks. Although the market value of tokens such as PEPE, BRETT and BONK has occasionally exceeded $ 1 billion, prices are still vulnerable to fluctuations.
The South Korean crypto market has taken a stricter approach to memecoins, especially after the regulations. Other major exchanges like Bithumb are similarly cautious about listing memecoins. However, despite these strict regulations in South Korea, memecoins continue to attract investors and have gained a significant place in the markets.
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