Why is it during a bullish market? The hidden costs behind the delisting of popular cryptoassets - insights from Coincheck CFO | CoinDesk JAPAN

Bitcoin has updated its all-time high, and the cryptoassets market is once again vibrant. However, behind those glamorous news, there are quite a few assets that are quietly disappearing from the trading scene.

In May 2025, the domestic cryptoasset exchange GMO Coin announced the delisting of six different cryptoassets, which was a symbolic event.

Related article: GMO Coin to discontinue handling of 6 types of cryptoassets including NEM and Symbol due to lack of liquidity.

In particular, the inclusion of Monacoin (MONA), which has a strong community as a Japanese-origin cryptoasset, and NEM (XEM), which was widely traded domestically in the past, was met with surprise by many investors.

Compared to overseas exchanges, the number of cryptoassets handled by Japanese exchanges is not large. Among them, why do exchanges decide to reduce the handling of even those assets that have a certain level of popularity?

Behind that, there are hidden costs and risks that exchanges continue to bear to maintain a single listing.

From an interview with Keigo Takegahara, the CFO of the major cryptoassets exchange Coincheck, the specific factors have come into view.

Compliant with JVCEA Regulations

First and foremost is compliance with the regulations set forth by JVCEA (Japan Virtual and Cryptoassets Exchange Association), the industry's self-regulatory organization.

According to Mr. Takegahara, exchanges are obligated to continuously evaluate the soundness of the cryptoassets they handle, as well as the status of related projects, not only when they first list a new cryptoasset but also regularly after it has started trading. If concerns are identified during this process, the cryptoasset may be considered for delisting.

Additionally, Mr. Takegahara stated regarding Japan's regulations, "There are issuers that conduct fundraising in a state where there are virtually no regulations overseas, which poses the risk of significant price fluctuations due to sudden changes in issuance volume. Japan's regulations help protect users by avoiding the handling of such concerns regarding certain tokens." Implementing measures such as establishing a certain notice and grace period at the time of a delisting decision is also part of this.

Technical Costs and Audit Fees

Specific costs include the management of wallets that store customer assets, processing customer deposits and withdrawals (transfers), and the operation of nodes to monitor the latest state of the blockchain.

Mr. Takegahara explains, "The cryptoassets entrusted to us by our customers are basically stored in cold wallets; however, for convenience, we also need to operate hot wallets, and for this, we must run our own nodes. Even if this is outsourced, monitoring is essential, and ongoing human and financial costs will continue to incur."

Furthermore, it is said that the accounting audit costs are becoming a significant burden.

"Exchanges are required by law to undergo audits by auditing firms. In this process, the auditing firms appoint experts for each cryptoasset handled to ensure the accuracy of the financial statements, and sometimes they operate nodes themselves to conduct verifications. The costs are high, and ultimately they fall on the exchanges. The more cryptoassets handled, and particularly in the case of cryptoassets with a very high number of transactions, the greater this cost burden becomes."

The audit costs are ongoing expenses incurred in maintaining the listed assets, and they are a factor that influences the management decisions of the exchange.

Liquidity Risk

One of the risks directly related to market fluctuations is the issue of liquidity.

In particular, in the sales offices where users buy and sell against the exchange, "cover trading" plays an important role. This refers to the transactions in which the exchange conducts opposing trades with other major overseas exchanges in order to hedge against price fluctuation risks from customer orders, thereby keeping its own position neutral.

[カバー取引の流れ（CoinDesk JAPAN制作）]This mechanism can lead to delisting.

"Assets such as Japanese cryptoassets with limited liquidity in overseas markets face challenges in securing cover trading partners. Furthermore, if the overseas exchange that serves as the cover stops handling that asset, it will lose its hedging means, forcing domestic exchanges to consider delisting as well. The trends of other exchanges may also serve as signals for their own decision-making."

In fact, after the announcement by GMO Coin, SBI VC Trade announced the delisting of Monacoin, while Bit Trade announced the delisting of both Monacoin and NEM, indicating a chain reaction.

[SBI VC Trade][From Bit Trade] The prices quoted at the exchange are also generated based on the price information of the underlying assets, so the loss of the underlying assets can be a factor that makes stable price quoting difficult.

Challenges in New Listings

In addition to these maintenance costs, there is also the challenge in Japan that the listing process for new tokens takes time.

For securities that are already listed domestically, the procedures have been simplified by the "Green List System" and the "CASC System". However, to handle securities that are traded overseas but are not yet listed in Japan, it is currently necessary to undergo an examination by the JVCEA.

Mr. Takegahara also touches on the importance of information management before the listing, pointing out that information disclosure regarding the listing plan must be conducted very carefully from the perspective of preventing insider trading.

From the above, the background behind a cryptoassets exchange deciding to delist is not only superficial reasons such as the volume of transactions, but also complex factors such as regulatory compliance, system operations, liquidity risks, and accounting audit costs.

Amidst the thriving market, there are stocks that quietly disappear. There are certainly fans and investors who have been supporting those stocks.

Behind the seemingly ruthless decision of delisting, there are unavoidable circumstances on the part of the exchange, as detailed in this article. I hope this article serves as a helpful aid in understanding that complex background.