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- Upbit will stop trading Loopring after compliance concerns remained unresolved.
- Exchanges are tightening listing standards amid rising security scrutiny.
- Tokenized gold is booming as investors seek safer blockchain-based assets.
South Korea’s largest crypto exchange, Upbit, will halt trading of Loopring (LRC) in March, citing transparency and compliance concerns. The move highlights growing scrutiny of digital assets even as interest in blockchain-based real-world assets — particularly tokenized gold — accelerates globally.
The contrasting developments show a market split between projects facing regulatory pressure and others gaining traction as investors seek stability amid macro uncertainty.
Loopring Delisting Signals Compliance Crackdown
Upbit confirmed it will end trading support for Loopring on March 16, 2026, following a review of the project’s disclosures, business activity, and long-term viability. The exchange had already placed the token on a caution list in January alongside reviews by Bithumb and Korbit, both members of the Digital Asset eXchange Association.
According to the exchange, unresolved information gaps and questions about sustainability prompted the delisting decision. All LRC orders will be canceled at the cutoff time, and users must withdraw tokens within 30 days.
Loopring, a Layer-2 protocol built on Ethereum, uses zero-knowledge proofs to process transactions off-chain while recording final results on the network. The design enables faster and cheaper trading compared with main-chain execution, but Upbit’s review suggested progress and disclosures had not met listing standards.
Security Risks Heighten Exchange Oversight
The delisting comes amid broader security concerns across the crypto industry. Recent blockchain analysis from firms such as Specter and MistTrack traced roughly 1,500 ETH to laundering activity through Tornado Cash.
In response, Upbit has strengthened safeguards, shifting over 99% of user assets to cold storage and pledging to cover potential losses. The exchange says strict listing reviews are part of its investor-protection policy.
Tokenized Gold Surges as Investors Seek Stability
While some crypto projects face tighter scrutiny, blockchain-based gold tokens are expanding rapidly. The tokenized gold market has now surpassed $6 billion in value, led by Tether Gold and Paxos Gold, which together dominate the sector.
The surge mirrors a sharp rally in physical gold prices tracked by Trading Economics, driven by inflation fears, geopolitical risk, and central-bank demand. Over 1.2 million ounces of gold now back blockchain tokens, reflecting rising institutional interest in tokenized real-world assets.
Yet the sector’s concentration raises questions about custodial risk and reliance on a few issuers — highlighting that even safer-perceived crypto assets carry structural vulnerabilities.
Also Read: Binance’s Limited Freeze of Upbit Hack Funds Raises Global Coordination Questions
Upbit’s Loopring delisting underscores how exchanges are tightening standards around transparency and risk. At the same time, the rapid rise of tokenized gold shows investors are gravitating toward blockchain assets tied to tangible value.
Together, the trends suggest crypto markets are maturing — with weaker projects facing pressure while regulated, asset-backed tokens gain credibility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
