In a significant regulatory development, South Korea's leading cryptocurrency exchanges, Bithumb and Coinone, have placed the digital asset Neiro (NEIRO) on their official delisting watchlists as of March 2025. The action stems from an assessment that the token's related online community demonstrates insufficient activity, marking a critical shift towards stricter token governance where project vitality and community engagement are paramount for exchange survival.
Bithumb provided a detailed rationale, noting that while NEIRO was originally issued based on online content, its community failed to meet active engagement metrics. Exchanges now employ sophisticated criteria to gauge project health, including social media engagement on platforms like Discord and Telegram, development activity such as GitHub commits, and trading volume consistency. The watchlist placement serves as a formal warning, granting the NEIRO project team a provisional period to demonstrate renewed vigor. Tokens failing to rectify such issues historically face permanent removal, triggering substantial price volatility.
This move is part of a broader, stringent regulatory environment in South Korea following the implementation of the Travel Rule and strict Anti-Money Laundering (AML) policies. Exchanges now operate extensive internal review boards that audit tokens based on a multi-point checklist extending beyond price and market cap. Key evaluation criteria include project viability and team disclosure, technology and security audits, community and ecosystem health, and legal and regulatory adherence.
In a separate but related incident, the Financial Supervisory Service (FSS) Governor Lee Chan-jin declared that investors who sold Bitcoin mistakenly distributed by Bithumb face a 'catastrophic' legal predicament. The error stemmed from a promotional 'random box' event with a fixed reward of 2,000 won (approximately $1.50) per participant, where Bitcoin was erroneously sent instead.
The FSS's position rests on the legal principle of unjust enrichment. Governor Lee emphasized that the distribution of Bitcoin constituted a clear mistake in performance, and recipients are obligated to return the 'original assets'—the specific Bitcoin, not its cash equivalent. This creates significant financial exposure for those who sold, as they may need to repurchase the cryptocurrency at a potentially higher market price. The governor noted that investors who proactively confirmed the deposit's legitimacy with Bithumb before selling might have a defense, placing the burden of due diligence on the recipient.
This incident highlights profound operational risks within cryptocurrency exchanges and serves as a real-world test for the evolving regulatory landscape. It aligns with South Korea's intensified scrutiny following the Terra-LUNA collapse and the ongoing development of the Digital Asset Basic Act (DABA). The FSS's stance aims to prevent moral hazard and maintain market integrity, though it may impose severe financial hardship on affected investors.
