Upbit Temporarily Halts High-Value Transactions: Regulatory Changes and Future Plans Revealed
Summary:
Upbit, a major South Korean cryptocurrency exchange, has temporarily discontinued transactions of digital currencies valued over 1 million won ($721) following shifts within VASP provider Ten&Ten. The last date for crypto asset withdrawal is April 22. Meanwhile, financial authorities in South Korea plan to implement stricter regulations for token listings by the end of April or early May. In the first quarter of 2024, the South Korean won reportedly surpassed the US dollar in cryptocurrency trading volume, with Upbit witnessing a significant drop in trading volume from $15 billion in March to $3.8 billion in April. Additionally, three spot Bitcoin ETFs have been approved by Hong Kong's financial regulator for listing on the Hong Kong Stock Exchange.
Upbit, one of South Korea’s leading cryptocurrency exchange platforms, has temporarily ceased accepting deposits and withdrawals of digital currencies valued over 1 million won (roughly $721). This decision was prompted by changes within the virtual asset service provider (VASP), Ten&Ten, which was pivotal in handling transactions of this amount. In an April 17 blog post, Upbit attributed the suspension to the discontinuation of the Travel Rule Solution service offered by Ten&Ten, whose own transaction support was halted on April 15. The last opportunity for clients to withdraw their crypto assets is slated for 10:00 KST on April 22. Ten&Ten was instrumental in facilitating transactions above 1 million won on the crypto exchange. Other VASPs capable of handling similar transactions include Bblock, Gopax, FlatExchange, Aprobit, among others. According to an April 10 report from the EU, Upbit held the second largest market share, following Binance, with about 528.57 billion. The first quarter of 2024 saw the South Korean won outperforming the U.S. dollar in cryptocurrency trading volume, with KRW transactions on centralized exchanges surpassing the $456 billion mark, marginally ahead of the USD’s $455 billion cumulative volume. Meanwhile, South Korean financial authorities are contemplating the issuance of stricter regulations for token listings on centralized cryptocurrency exchanges by late April or early May. These guidelines will also bar any digital assets suspected of being hacked from being listed on domestic exchanges unless the root cause is firmly established. Following a previous peak trading volume of nearly $15 billion on March 5, Upbit saw a significant drop to $3.8 billion in the beginning of April. The impressive trading volume in March could be linked to Bitcoin’s all-time high value of $69,200 recorded on the same day. Elsewhere, three spot Bitcoin ETFs have been allegedly approved by Hong Kong's financial regulator and are slated to be listed on the Hong Kong Stock Exchange in about two weeks.
Published At
4/17/2024 1:01:59 PM
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