Upbit Halts Crypto Transfers of Over 1M Korean Won

Upbit, a prominent South Korean cryptocurrency exchange, has declared that it will stop deposit and withdrawal services for digital currencies worth more than 1 million Korean won ($721). This move comes in reaction to changes in the regulations for virtual asset service providers (VASPs), particularly due to issues related to Ten&Ten, a major entity handling these transactions. 

Following the announcement on April 17, this suspension is due to the end of services tied to Ten&Ten’s Travel Rule Solution, leading Upbit to implement these restrictions.

A Curious Decision by Upbit

The Ten&Ten exchange services ceased transaction support on April 15, with the final opportunity to withdraw cryptocurrency assets being April 22 at 10:00 am Korea Standard Time. Ten&Ten was instrumental in enabling the cryptocurrency exchange to process crypto deposits and withdrawals exceeding 1 million won. Other Virtual Asset Service Providers (VASPs) capable of handling deposits and withdrawals above 1 million won include Bblock, Gopax, FlatExchange, Aprobit, Prabang, Borabit, BTX, Flybit, Foblegate, Bithumb, Coinone, Korbit, Coredocs, GDAC, Hanbitco, Qbit, Korea Digital Asset Trust, and Oasis Exchange.

Cryptomode reported yesterday that the South Korean Won (KRW) surpassed the US Dollar (USD) in cryptocurrency trading volume. The trading volume involving the Won on centralized cryptocurrency exchanges reached over $456 billion, slightly higher than the US Dollar’s trading volume, which was approximately $455 billion.

The biggest centralized cryptocurrency exchanges within South Korea include Upbit, Bithumb, Coinone, and Korbit. This suggests that a significant portion of global cryptocurrency exchange volume originates from South Korea, especially as cryptocurrency prices surge during this bullish phase. Additionally, both spot and derivatives trading volumes showed an upward trend in South Korea in April.

At present, authorities in South Korea are set to introduce stricter regulatory measures for token listings on centralized cryptocurrency exchanges by the end of April or early May at the latest. Additionally, the authorities will ban listing digital assets involved in hacking incidents on local exchanges until the primary cause is fully identified.