Upbit, one of South Korea’s largest cryptocurrency exchanges, has temporarily suspended deposits and withdrawals of more than 1 million Korean won ($721).
This decision, set out in a official statement released today (April 17), following changes to the operations of Ten&Ten, a local VASP that facilitates high-value transactions.
Upbit stops high value transactions after ten and ten service suspension
Effective immediately, Upbit has announced the suspension of processing deposits and withdrawals of more than 1 million Korean won. This decision is attributed to the recent suspension of Ten&Ten’s Travel Rule Solution service, a crucial component that enabled Upbit to facilitate high-value crypto transactions.
South Korea’s implementation of the FATF crypto travel rule includes regulations on transactions between individuals, while leaving self-hosted or non-custodial wallets without specific rules. As a result, South Korea has set a minimum threshold of 1 million won for compliance with the Crypto Travel Rule. This means that all Virtual Asset Service Providers (VASPs) in South Korea are required to comply with these regulations.
In compliance, Ten&Ten stopped its transaction support on April 15, prompting Upbit to take action and notify its users. Affected users are advised to complete necessary transactions before April 22 at 10:00 a.m. Korea Standard Time to avoid any inconvenience.
The termination of Ten&Ten’s services represents a significant development for Upbit and its user base, as it affects the exchange’s ability to efficiently process large-scale crypto transactions.
In response to this transition, Upbit has implemented measures to mitigate disruptions and ensure continued service provision while meeting regulatory guidelines. This move by Upbit also occurs within the context of broader regulatory developments in South Korea’s cryptocurrency ecosystem. Recent reports indicate a notable shift, with the South Korean Won (KRW) surpassing the US Dollar (USD) in crypto-fiat trading volume during the first quarter of 2024.
🇰🇷 The South Korean won has emerged as the leading fiat currency for cryptocurrency trading, surpassing the US dollar in Q1. #SouthKorea #Wonhttps://t.co/hTRcUJVErP
— Cryptonews.com (@cryptonews) April 17, 2024
According to data from the quaytransactions denominated in Korean won on centralized exchanges rose past the $456 billion mark, slightly surpassing the cumulative volume denominated in US dollars, which stood at about $455 billion.
South Korean authorities are preparing stricter guidelines amid growing interest
🇰🇷 South Korean regulators discuss crypto regulation with ASEAN, OECD officials
South Korean regulators have spoken with officials from ASEAN, the Association of Southeast Asian Nations. #CryptoNews #SouthKoreahttps://t.co/nOt3NmFQ0z
— Cryptonews.com (@cryptonews) March 19, 2024
South Korea is about to implement stricter regulations to refine the token listing process on cryptocurrency exchanges. Recent reports indicate that the country’s financial authorities are finalizing support guidelines for virtual assets, which are expected to be released by the end of this month or early next month.
The Financial Supervisory Service (FSS), South Korea’s financial watchdog, has led the development of these listing guidelines since the latter half of last year. In collaboration with industry stakeholders such as the Digital Asset Exchange Association (DAXA), the FSS aims to establish robust standards to strengthen investor protection and market transparency.
A recent survey conducted by the Korea Women’s Policy Institute revealed a marked shift in young South Koreans’ attitudes toward the national pension system. The survey, which surveyed individuals aged 20–39, revealed widespread disillusionment with state-issued pensions, with more than three-quarters expressing a lack of confidence in the system. Many respondents cited concerns about rising insurance premiums and doubts about the sustainability of the National Pension Service (NPS) amid demographic challenges such as population decline.
In light of these concerns, many young South Koreans are turning to alternative investment avenues, including stocks and cryptocurrencies, to secure their financial future. With more than half of respondents choosing to build their retirement funds through investments in stocks and crypto-assets, it’s clear that traditional pension schemes are losing favor among younger demographics.
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