Upbit Halts Deposits and Withdrawals Over 1 Million Korean Won

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Upbit, the prominent cryptocurrency exchange in South Korea, has temporarily halted deposits and withdrawals worth over 1 million Korean won (KRW). This decision came after Upbit established a new partnership with Ten&Ten, a virtual asset service provider (VASP), which previously facilitated large transactions. As a result, big-value crypto transfers on Upbit are currently restricted.

Upbit announced a suspension on April 17, 2024, because Ten&Ten’s Travel Rule Solution service was no longer available. Ten&Ten stopped processing transactions on April 15, and users had until April 22 at 10:00 KST to withdraw their funds.

Upbit is actively seeking replacement virtual asset service providers, but during this transition, exchanges such as Bithumb, Coinone, Bblock, Qbit, Asset Trust (KDAC), and Korbit remain operational for significant transactions in the South Korean market. This temporary issue does not diminish Upbit’s standing as a prominent player in the Korean cryptocurrency scene.

Upbit’s Resilience amid Regulatory Challenges

South Korea is set to impose tighter regulations on cryptocurrency exchanges with new guidelines, effective from late April or early May, aimed at increasing transparency and minimizing risks during digital asset listings. The recent suspension of Upbit serves as a reminder of the evolving crypto regulatory landscape in South Korea.

In spite of regulatory adjustments, South Korea’s digital asset market continues to thrive. Notably, in the first quarter of 2024, trading volumes in South Korean won surpassed those in US dollars on centralized cryptocurrency exchanges. According to Kaiko data, KRW transactions amounted to over $456 billion, exceeding the US dollar’s approximately $455 billion volume during this period.

The growing popularity of the Korean won in cryptocurrency transactions highlights the significant role Korea is playing in the global cryptocurrency market. According to a recent EU report, Upbit ranks second worldwide in market share, with around 528.57 billion in estimated shares, indicating the prominence of the won and the expanding influence of regional crypto trading.

Upbit’s Trading Volume Swings amidst Partnership Changes

Recently, Upbit observed some noteworthy trading patterns. In early April, its daily trading volume dipped to $3.8 billion, a significant decrease from its daily peak in March which reached an impressive $15 billion on the 5th of that month. This surge in trading activity might have been linked to Bitcoin‘s historic price high of $68,300 on that same day. Upbit’s fluctuating volumes reflect the unpredictable nature of the crypto market and traders’ reactions to price changes.

As Upbit works on partner modifications, South Korea’s cryptocurrency scene carries on developing. With imminent stricter rules and the Korean won’s influence over regional trading, it’s intriguing to observe how Upbit and other exchanges adapt to the regulatory changes.

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2024-04-17 17:54