What Is the Legal Basis for an Exchange Delisting a Cryptocurrency?

Exchanges typically delist cryptocurrencies based on their own terms of service or to comply with regulatory mandates, particularly those related to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). If a coin's privacy features are deemed to pose an unacceptable risk for compliance, or if the coin is classified as an unregistered security, an exchange can legally delist it to mitigate its own legal exposure.