How crypto exchanges decide which coins to list, and what happens when a coin is delisted

Which coins you can buy depends on which ones your exchange lists, and a coin you hold can be removed. Regulated exchanges don’t make those decisions on a whim. In New York, California and Canada, regulators expect a documented review of each coin’s risks before it’s listed, and a plan for removing it.

This guide explains those reviews, the features that count as red flags, the rules for delisting, and what to do if a coin you hold is removed. For choosing an exchange in the first place, see how to choose a crypto exchange.

New York: the Greenlist and self-certification

New York’s Department of Financial Services (NYDFS) regulates firms holding a BitLicense or a limited purpose trust charter. Its November 2023 listing guidance sets out two ways for these firms to offer a coin:

• The Greenlist. Firms can list coins on the regulator’s Greenlist without prior approval, as long as they notify NYDFS first and have an approved delisting policy. NYDFS says it generally considers adding coins with a historic record consistent with safety and customer protection, including broad market adoption, or stablecoins it has approved for issuance in New York.
• Self-certification. A firm with an NYDFS-approved coin-listing policy can approve coins itself, after notifying the regulator. NYDFS won’t approve a listing policy without a delisting policy alongside it.

NYDFS can, at any time, require a firm to delist or limit access to a coin. For more on New York’s regime, see the New York BitLicense.

What the review must cover

A listing policy needs governance: the board, or a committee it delegates, approves the policy and each new coin, independently of the people recommending it. Any conflicts of interest must be assessed and disclosed to the public.

Each coin then needs a risk assessment covering, among other things:

• technical design: how the coin is issued, governed, used and designed, and whether it was created for legitimate purposes;
• cybersecurity risks to the coin and its blockchain;
• market and liquidity risk, including concentration of holdings in a few hands, price manipulation and fraud;
• illicit finance risk, including use in sanctions evasion;
• legal risk, including pending or potential enforcement actions;
• operational, reputational and regulatory risks.

Listed coins must be re-evaluated at least once a year, and after material changes such as a hard fork. See what is a hard fork?

The red flags

NYDFS says a coin can’t be self-certified at all if it’s designed or substantially used to get around laws, or has features designed to hide who’s behind a transaction.

For trading open to retail customers, it also can’t be self-certified if it has any of these features, unless it’s on the Greenlist or NYDFS approves it separately:

NYDFS defines circulating supply as coins publicly available to buy and not locked up or vesting, and total supply as all coins, including those locked or held in reserve. A low share circulating means large amounts could reach the market later. See the 51% attack explained and crypto bridges explained.

Memecoins

In January 2025, NYDFS warned about the rapid spread of sentiment-based coins. It said they’re often owned by a few people connected to their creator, aren’t broadly traded and are very volatile, and that some have reportedly led to big consumer losses through wash trading, pump-and-dump schemes and other manipulation. It concluded that coins like this are generally incompatible with its listing guidance. See memecoins and their risks.

California: certification before listing

Under California’s crypto licensing law, an exchange serving residents must certify to the state regulator, before listing a coin, that it has:

• identified how likely the coin is to be treated as a security by federal or California regulators;
• disclosed, in writing, all material conflicts of interest;
• carried out a risk assessment covering cybersecurity, theft and other wrongdoing, code or protocol defects, and market risks such as manipulation and fraud;
• set policies to re-evaluate each coin and to stop listing it, including notifying affected customers.

Coins approved for listing by NYDFS on or before 1 January 2025 don’t need this certification. If an exchange lists a coin without proper certification, or misrepresents things in it, the regulator must order it to stop offering the coin and may impose a penalty of up to $20,000 a day. See California’s DFAL crypto license.

Canada: know-your-product reviews

Canadian platforms review coins under a know-your-product policy. Newton’s 2026 decision gives an example of what it covers: how the coin was created and is governed, used and designed, including its source code, security and the background of its developers; its supply, demand, maturity, utility and liquidity; technical risks such as code defects, hacks and forks; and legal and regulatory risks. The platform must also decide whether a coin is a security or derivative, and it only offers those that aren’t, apart from qualifying stablecoins.

Newton must also have procedures to promptly stop trading a coin it no longer offers, and let clients sell their positions in an orderly way. See Canadian crypto platforms joining CIRO.

Delisting: what you’re entitled to

New York’s guidance is the most detailed on delisting:

• The exchange must tell NYDFS at least 10 business days before telling customers, unless urgent circumstances outside its control require faster action.
• Customers should get at least 30 calendar days’ written notice, using all reasonable efforts, of which coin is being delisted, when, and how to sell it or transfer it off the platform, where that’s allowed.
• The exchange must provide enough customer support to help people sell or move the coin safely.
• It must keep a record of coins held personally by decision-makers, and use information barriers to avoid market manipulation or insider trading around a delisting.

If a coin you hold is delisted

1. Read the notice carefully. Note the deadline and whether you can withdraw the coin or only sell it.
2. Decide early, rather than on the last day, and check whether trading or withdrawals stop on different dates.
3. If you withdraw, check the network. Send the coin only to a wallet or platform that supports the same blockchain. See how to send crypto safely.
4. Keep records. Selling is generally a taxable disposal, and in the US it’s also the usual way to lock in a loss for tax purposes. See worthless crypto and tax losses.

A listing review screens out some risks, but it’s not a guarantee. Treat a newly listed coin with the same caution as any other.