Upbit, one of South Korea’s largest cryptocurrency exchanges, has temporarily suspended deposits and withdrawals exceeding 1 million Korean won ($721) due to modifications to operations of a local VASP facilitating high-value transactions. The suspension follows the termination of Ten&Ten’s Travel Rule Solution service, a crucial component that enabled Upbit to process large-scale crypto transactions. South Korea’s FATF crypto travel rule regulations stipulate a minimum transaction threshold of 1 million won for compliance. As a result, all virtual asset service providers (VASPs) in South Korea are required to adhere to these rules, leading Upbit to halt high-value transactions until further notice. Affected users are advised to complete necessary transactions before April 22 to avoid any inconvenience.
The termination of Ten&Ten’s services is a significant development for Upbit and its users, impacting the exchange’s ability to facilitate large-scale crypto transactions efficiently. In response, Upbit has implemented measures to mitigate disruptions and ensure continued service provision while complying with regulatory guidelines. Recent reports indicate that the South Korean won has surpassed the US dollar in crypto-fiat trading volume during the first quarter of 2024, with transactions denominated in Korean won on centralized exchanges surpassing $456 billion, slightly outpacing the cumulative volume denominated in US dollars at approximately $455 billion.
South Korea is preparing to implement stricter regulations to refine the token listing process on cryptocurrency exchanges. Financial authorities are finalizing virtual asset trading support guidelines expected to be unveiled by the end of this month or early next month. The Financial Supervisory Service (FSS), South Korea’s financial watchdog, has collaborated with industry stakeholders to establish robust standards to enhance investor protection and market transparency. A survey conducted by the Korea Women’s Policy Institute revealed a shift in young South Koreans’ attitudes toward the national pension system, with many expressing mistrust in the system and turning to alternative investment avenues such as stocks and cryptocurrencies to secure their financial futures.
Young South Koreans are increasingly turning to alternative investment avenues, including stocks and cryptocurrencies, to secure their financial futures amid rising concerns over the sustainability of the National Pension Service (NPS) and demographic challenges like population decline. With over half of the respondents opting to build their retirement funds through investments in stocks and crypto assets, traditional pension schemes are losing favor among younger demographics in South Korea. South Korean regulators are engaging in discussions with officials from ASEAN and the OECD to refine crypto regulations, with the country’s financial authorities working to establish guidelines to bolster investor protection and market transparency in the virtual asset trading sector.
South Korea’s emergent leadership in cryptocurrency trading is evident as the South Korean won has surpassed the US dollar in crypto-fiat trading volume, marking a significant shift in the country’s cryptocurrency ecosystem. With the implementation of stricter regulations and guidelines for virtual asset trading support, South Korea aims to strengthen its position in the global cryptocurrency market and enhance investor confidence. Cryptocurrency exchanges like Upbit are adapting to regulatory changes and implementing measures to ensure compliance while continuing to provide efficient services to their users amidst evolving trends in the cryptocurrency landscape.
