The Korea Digital Asset Exchange Association recently made an announcement regarding the suspension of trading and termination of support for ORB and TEMCO tokens. This decision was made due to both projects violating the Virtual Asset User Protection Act, which could potentially impact their asset values.
Following this decision, South Korean crypto exchange Bithumb released a notice to inform its users about the status change for Orbs and Temco tokens. These assets have now been classified as “trading caution items” effective from November 6, 2024. As a result, Bithumb will no longer support trading for ORB(ORBS) and TEMCO tokens, and deposits for these tokens will be halted. Bithumb will provide further updates regarding the suspension and possible end of transaction support between November 18th and 22nd.
In the notice, Bithumb highlighted that layer3 blockchain Orbs provided false information about important matters that could affect the cryptocurrency’s market value. Additionally, Orbs’ business operations were deemed unclear, and there was a lack of communication channels for virtual asset holders, leading to its classification as a trading cautionary stock.
On the other hand, supply chain platform Temco was accused of arbitrarily changing crucial information without prior notice to the public. The platform also failed to be transparent about certain matters that could influence the value of their digital asset.
The decision to suspend trading for ORB and TEMCO tokens is part of DAXA’s efforts to protect investors by designating trading caution items and terminating support for certain virtual assets. This move serves as a warning for investors to exercise caution when dealing with related virtual assets.
Furthermore, recent reports have revealed that several crypto exchanges in South Korea have ceased operations in 2024 due to the implementation of the Virtual Asset User Protection Act. This has left around 34,000 crypto owners attempting to access their assets, valued at approximately 17.8 billion won ($12.8 million), consisting of both cashable assets and cryptocurrencies.
The suspension of trading for ORB and TEMCO tokens underscores the importance of regulatory compliance and transparency in the cryptocurrency industry. Investors are advised to stay informed about regulatory developments and conduct thorough research before investing in virtual assets to mitigate potential risks and losses.
