Delisting Requirement

Definition ∞ A delisting requirement is a condition or rule that, if violated, results in a digital asset being removed from a trading platform. Exchanges establish these requirements to maintain market quality, comply with regulations, or protect users from fraudulent or inactive projects. Common reasons include low trading volume, security vulnerabilities, or regulatory non-compliance.
Context ∞ Delisting requirements frequently appear in crypto news when exchanges announce the removal of certain tokens, impacting their liquidity and investor access. This practice underscores the platforms’ role in market governance and risk management. The ongoing trend indicates increased scrutiny from exchanges to maintain a reputable and compliant listing environment.