Listing/Delisting Policy (2024)

LISTING/DELISTING POLICY

Last update: 8th of August, 2024

SCOPE

The principles outlined in Listing/Delisting Policy (the “Policy”) build a framework of the cryptocurrency listing / delisting and listing suspension principles and procedures applied by CEX.IO EU VASP, UAB (Lithuania), CEX.IO Corp. (US) and CEX OVRS LLC (St. Kitts and Nevis) (the “CEX.IO”) according to the User’s jurisdiction.

The objective of the Policy is to ensure that CEX.IO protects its business and Users by listing only legitimate cryptocurrency and provide the User with clear and transparent delisting procedure.

Future listings/delistings or listing suspension of the cryptocurrency on the Platform will be based on the guidelines set out in the Policy. CEX.IO will consider how each prospective v that wishes to be listed or should be delisted or listing suspended on the Platform for prescribed reasons complies with the principles below.

DEFINITIONS

Capitalised terms used in the Policy shall be interpreted in accordance with the definitions provided below:

Cryptocurrency: means a peer-to-peer decentralised digital representation of value (e.g. bitcoin, ethereum, etc) including tokens.

Cryptocurrency issuer: means a company or Cryptocurrency team that issues the Cryptocurrency.

Committee: means a CEX.IO’s committee of senior management, and other employees whose presence is deemed necessary by the senior management team.

Delisting: means ceasing to support a particular Cryptocurrency by CEX.IO, disabling a Cryptocurrency’s services like deposit/withdrawal, buy/sell, convert, store and removing Cryptocurrency’s trading pairs from the Platform. After delisting the Cryptocurrency won't be available on the Platform.

Platform: means an environment created by CEX.IO that allows to trade Cryptocurrencies on CEX.IO’s official website -https://cex.io/.

Project: means a blockchain network where the digital asset is used.

Social Media: means CEX.IO’s official X page available viahttps://x.com/cex_io, CEX.IO’s official Facebook page available viahttps://www.facebook.com/CEX.IO, CEX.IO’s Official Blog available viahttps://blog.cex.io/ and CEX.IO’s official Telegram group available via https://t.me/CEXIO_Announcements.

Storage fee: means a fee for storing of a delisted Cryptocurrency that is charged according to our Terms of Use after providing thirty (30) days possibility for Users to withdraw it.

Suspended Listing: means temporarily ceasing to support a particular Cryptocurrency by CEX.IO, disabling a Cryptocurrency’s deposit/withdrawal functions, and temporarily ceasing a Cryptocurrency’s trading pairs on the Platform.

Terms of Use: means an electronic agreement between the User and CEX.IO that applies to the User's use of the Platform, any and all services, products and content provided by CEX.IO and is available viahttps://cex.io/terms.

User: means a person or a legal entity that has an account on the Platform and agrees on CEX.IO Terms of Use.

1. CRYPTOCURRENCY LISTING PROCEDURE

1.1 The listing procedure can be initiated by CEX.IO or by the Cryptocurrency issuer itself.

1.2 If a listing procedure is initiated by CEX.IO, then it conducts a general internal audit for listing on the Platform.

1.3 To initiate a listing procedure the Cryptocurrency issuer can make a listing application request viahttps://forms.gle/Esw1GzKD9BfTpg4B9.

1.4 The Committee examines all aforementioned requests on a first-come-first-served basis.

1.5 The Committee initiates an internal due diligence of the Cryptocurrency’s documents received. As soon as due diligence is completed the Committee can approve or reject the listing of the Cryptocurrency on the Platform.

1.6 The Committee reserves the right to reject the Cryptocurrency listing without any reason.

2. EVALUATION CRITERIA

2.1 The foundation of the Listing Procedure is built on criteria mentioned in articles 3 – 9 of the Policy evaluating which CEX.IO will decide on the possibility and expediency of listing of the Cryptocurrency.

2.2 These criteria should be assessed by the Committee.

2.3 Not all criteria are strictly required to be met but serve as an orientation to determine the listing decision. The leading principle is users focus, enabling users the most user-friendly experience and easy access to Cryptocurrencies that are supported by projects.

3. CRYPTOCURRENCY GENERAL INFORMATION

3.1 The Cryptocurrency impact

How the Cryptocurrency influences the development of the domain industry and technology overall.

3.2 Innovation

Technology the Cryptocurrency uses is innovative and unique.

3.3 Whitepaper

Whitepaper has detailed explanation of the problems it aims to solve and the original ideas behind their solving mechanism, along with the clear description of their Project.

3.4 Roadmap

The Project should have a clearly described roadmap, which they follow in accordance with the timeframes.

3.5 Cryptocurrency’s business model acceptance

Whether the Cryptocurrency is suitable for CEX.IO's current business model.

4. TEAM

4.1 Founders and staff

Founders should be experts in the domain area of the Project. Staff should consist of a sufficient number of employees working on the Project development.

4.2 Business

The presence of a solid background in business management and a clear vision of strategy is important.

4.3 Project Location

The Cryptocurrency has a geographic location and the possibility of communication with the developer community.

5. TECHNICAL ASPECTS

5.1 Source code

The code is accessible, well-tested, easy to understand and maintainable.

6. LEGAL AND COMPLIANCE STANDING

6.1 Legislative framework

The Cryptocurrency does not fall under the definition of a security in any jurisdiction and does not violate any laws by its nature.

6.2 Audit

The Cryptocurrency issuer conducts an audit on an ongoing basis by professional auditors.

6.3 Compliance framework

The Cryptocurrency will not interrupt CEX.IO’s ability to meet Anti-Money-Laundering (AML) and Know-Your-Customer (KYC) compliance obligations and any other obligations under government licences in any jurisdiction. Also, the Cryptocurrency issuer conducted AML and KYC procedures within the Initial Cryptocurrency Offering (ICO) process if any.

7. MARKET DYNAMICS

7.1 Market capitalization

The Сoin takes a wide part of global market capitalization.

7.2 Trading volume

The amount of Сoins used in the turnover and the frequency they are exchanged are taken into account.

7.3 Exchangeability

The Сoin is listed on the number of exchanges with a wide diversity of trading pairs.

8. MARKETING

8.1 Project social activity

The Cryptocurrency issuer actively communicates with its customers in various channels, including email, social media, and support requests and provides timely answers to questions of the community.

8.2 The Cryptocurrency provision

There is a possibility of distribution of some amount of Cryptocurrency within Users on the Platform.

8.3 Joint marketing

The Cryptocurrency issuer is interested in common promotion and PR events and creating a new Project jointly with CEX.IO.

9. COMMUNITY DEMAND

9.1 Community activity

The Project has several social media channels with a number of followers who actively respond to the regular Project's news and updates. The Internet community provides positive comments and feedback on the Project.

9.2 Investors interest

The Project benefits from the interest of various stakeholders, including private investors, venture firms or hedge funds, preferably those who have experience in the industry of financial innovations.

10.DELISTING PROCEDURE

10.1 CEX.IO reserves the right to delist any Cryptocurrency for any reason, including but not limited to, low liquidity or blockchain issues.

10.2 CEX.IO will notify Users of any upcoming delisting with a minimum of thirty (30) days' prior written notice. The User is obligated to exchange if such a possibility is preserved or withdraw the Cryptocurrency that will be delisted to an external wallet within thirty (30) calendar days of such notice.

10.3 CEX.IO shall follow next criteria while taking a decision to delist the Cryptocurrency from the Platform (these examples are given by way of example only and not exhaustively):

implementation of new regulatory standards and other compliance issues;
blockchain or related technology becomes compromised or defective, halting Cryptocurrency’s network;
Low liquidity of the Cryptocurrency;
Cryptocurrency no longer supported by the Cryptocurrency issuer or others;
limited trading volume on the Platform or potentially suspicious trading activity;
unreliable Cryptocurrency issuer who ignores listing good practice and act without good faith;
violation of the Terms of Use or any agreement;
major changes in the Cryptocurrency’s team, product, or business model without notifying CEX.IO in advance for auditing;
complaints by Users and traders of the Cryptocurrency;
transferring or selling the Cryptocurrency’s project;
the project, team, consultant, or founder has significant legal and negative issues;
Cryptocurrency’s project development is not carried out in accordance with the timeline of the roadmap planned in the White Paper. Progress delays without explanation or announcement;
Cryptocurrency project is suspected to be involved in money laundering, deceiving, pyramid schemes or any other illegal acts;
violation of a third party’s intellectual property rights;
detection of other risks related to the Cryptocurrency listing.

10.4 Upon expiration of the thirty (30) calendar day notice period, if the amount of the delistedCryptocurrency falls below the minimum withdrawal amount, CEX.IO reserves the right to write off the remaining balance in Cryptocurrency or Token on the User’s Account. The User may refer to theLimits and Commission webpage for details on the minimum withdrawal amounts for each Cryptocurrency.

10.5 Additionally, CEX.IO reserves the right, after the expiration of the thirty (30) calendar day notice period, to convert the User’s remaining funds in the delisted Cryptocurrency or Token into USDCryptocurrency (‘USDC’) or Tether (‘USDT’) or any other stablecoin at the average cryptocurrency rate over the five (5) calendar days preceding the delisting date. A commission for such conversion will apply, the amount of which will vary depending on the Cryptocurrency or Token and will be communicated to Users via email prior to the delisting date.

10.6 If CEX.IO is unable to convert the delisted Cryptocurrency or Token due to its low liquidity or any other reason, CEX.IO reserves the right to irrevocably write off all remaining delisted Cryptocurrency funds in the User’s Account and cease support for the relevant blockchain.

10.7 Upon announcing the delisting of the Cryptocurrency, CEX.IO reserves the right to suspend all related services, including but not limited to, deposits, trading, and conversions. However, CEX.IO will maintain the ability for Users to withdraw the Cryptocurrency that will be delisted recently.

10.8 The thirty (30) days term for withdrawal will not be available in case of a force-major, namely an event beyond CEX.IO control, including, but not limited to the Cryptocurrency’s non-working blockchain or wallet, due to which CEX.IO will be unable to conduct any transactions.

10.9 The User acknowledges and agrees that failure to withdraw the delisted Cryptocurrency within the specified thirty (30) day period before its delisting will result in the User losing access to those funds.

10.10 CEX.IO reserves the right to cease any trading pair without prior notice to the Users and/or Cryptocurrency issuer.

10.11 In some cases that may potentially bring losses to CEX.IO and/or CEX.IO users, or in case of any force major, or in the event that CEX.IO receives an order from a relevant government authority and/or Cryptocurrency delisting is part of a legal or regulatory action CEX.IO is entitled under its sole discretion to Delist any Cryptocurrency from the Platform immediately.

11. CRYPTOCURRENCY LISTING SUSPENSION

11.1 In some cases that may potentially bring losses to CEX.IO and/or CEX.IO users, or in case of any force major CEX.IO is entitled under its sole discretion to Suspend Listing of any Cryptocurrency on the Platform immediately following notification to Users.

11.2 CEX.IO can also follow the criteria specified in Clause 10.3 above while taking a decision to Suspend Listing of the Cryptocurrency on the Platform (these examples are given by way of example only and not exhaustively).

11.3 In the cases prescribed by this Section CEX.IO reserves the right to Suspend Listing of the Cryptocurrency for investigation with the following possible Delisting.

11.4 CEX.IO can provide Users with a thirty (30) day term to withdraw Cryptocurrency which will be suspended from their Accounts if it is possible.

11.5 The thirty (30) days term for withdrawal will not be available in case of a force major, namely an event beyond CEX.IO control, including, but not limited to the Cryptocurrency's non-working blockchain or wallet, due to which CEX.IO will be unable to conduct any transactions.

11.6 In case CEX.IO can predict the time of Suspended Listing CEX.IO will notify Users about it. Users understand that in cases including, but not limited to, major and Cryptocurrency’s blockchain and/or network problems CEX.IO is not able to predict the timeline for resolving these issues.

12. RESPONSIBILITY

12.1 CEX.IO shall bear no responsibility for Delisting or Suspend Listing Cryptocurrency from the Platform. CEX.IO shall not be held liable for any damages, loss of profit, loss of revenue, loss of opportunity, loss of data, or indirect or consequential loss.

12.2 To the extent permitted by the applicable law, CEX.IO shall not be held liable for any damages, loss of profit, loss of revenue, loss of opportunity, loss of data, or indirect or consequential loss. Trading with cryptocurrencies involves a significant amount of risk. For more information about risks, please read and refer to the applicable CEX.IO’s Terms of Use.

CEX.IO may in its sole discretion amend or change or cancel this Listing / Delisting Policy at any time and for any reason without prior notice for users.

FAQs

How long can a stock stay under $1 before delisting? ›

Nasdaq requires companies listed on its exchanges to maintain a closing price above $1. Companies that fail to meet this criterion for 30 consecutive trading days are deemed to be non-compliant with the listing standards and are given 180 days to regain compliance.

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Can a stock be listed after being delisted? ›

If a delisted company can return to stability and meet the listing criteria, it may re-list later. A company may also voluntarily delist shares due to a merger or acquisition, going private, or if it feels that the costs outweigh the benefits to remain listed.

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Can I get money back from delisted stock? ›

Though delisting does not affect your ownership, shares may not hold any value post-delisting. Thus, if any of the stocks that you own get delisted, it is better to sell your shares. You can either exit the market or sell it to the company when it announces buyback.

How long does the delisting process take? ›

Each exchange has an appeals process for delisting. The NYSE has a 25-day review period to consider all of the company's finances and plans for growth. The exchange General Counsel will make a final decision on the delisting at the end of the review period.

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What is the 10 day rule in the stock market? ›

The Securities and Exchange Commisssion (SEC) is authorized under federal law to suspend trading in any stock for a period of up to 10 business days when it believes that the investing public may be at risk. A number of things can lead to an SEC trading suspension.

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Do you lose all your money if a stock delists? ›

The Impact of Delisting on Investors

Once a stock is delisted, stockholders still own the stock. However, a delisted stock often experiences significant or total devaluation. Therefore, even though a stockholder may still technically own the stock, they will likely experience a significant reduction in ownership.

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How do I sell a stock that has been delisted? ›

If you own delisted shares, you can still sell them on the Over-the-Counter Bulletin Board (OTCBB) or on the Pink Sheets, which have more relaxed regulations and few listing requirements. OTC trading is volatile, and this level of risk is typically not suitable for beginning investors.

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Can you write off a delisted stock? ›

Technically the IRS requires that a stock be totally worthless before you are entitled to a deduction. Some delisted stocks still trade in other markets which means they're not totally worthless as the iRs requires.

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What happens if you own puts on a stock that gets delisted? ›

What would happen if I bought a put option and the company got delisted before the expiration date? If the company is delisted, you can still exercise your PUT option (and you probably should). So if you own shares, you can still sell the shares at the strike price, even if they are no longer listed.

What to do after delisting? ›

Although some brokerages restrict such OTC transactions, you generally can sell a delisted stock just as you would a stock that trades on an exchange. A delisted stock can continue to trade over the counter for years, even if the company files for bankruptcy.

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What happens to share price after delisting? ›

While delisting doesn't impact ownership, the shares may lose value post-delisting. If your stocks face delisting, consider selling them. Exit the market or sell during the company's buyback announcement. Making informed decisions based on a thorough analysis can contribute to achieving long-term investment goals.

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How long do delisting appeals take? ›

EXCESSIVE REVERSE STOCK SPLITS

A company would still be permitted to appeal the delisting determination to the Nasdaq hearings panel, where it could potentially receive up to 180 days to regain compliance.

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What happens if a stock drops below $1? ›

Penny stock companies are those whose stock trades at $5 or less. They face delisting if their stock drops below $1, but Nasdaq's rules give them leeway to stay on the exchange for almost two years rather than be delisted, after which they can only be traded in the over-the-counter market.

Get More Info Here ›

How long can a stock trade below $1 on Nasdaq? ›

A company's shares listed on Nasdaq are required to maintain a closing bid price of no less than $1.00 per share (Minimum Bid Price Requirement). If the closing bid price of a company's shares are below $1.00 for 30 consecutive trading days, the company is considered to be in violation of Minimum Bid Price Requirement.

What price does a stock have to be to be delisted? ›

If a stock's share price drops below $1.00 and remains below that level for 30 days, the exchange may notify the company that it is not in compliance with listing requirements and is at risk of being delisted.

How long do I have to keep a stock before I can sell it? ›

Yes, you can sell stock 2 days after buying. In fact, you can even sell a stock the same day you buy it — but if you're trading in the U.S. with an account under $25K, the amount of day trades you can execute may be limited.

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