Upbit Halts Large Crypto Transactions Over $721 Temporarily Due to Operational Changes

Upbit, a major cryptocurrency exchange in South Korea, has announced a temporary halt to transactions exceeding 1 million Korean won (approximately $721). This decision stems from operational adjustments at the exchange's Virtual Asset Service Provider (VASP), Ten&Ten. Specifically, Upbit cited the temporary suspension of the Travel Rule Solution service provided by Ten&Ten as a primary factor influencing its decision to terminate the relationship. The halt is immediate and affects a significant portion of Upbit's customer base.

The announcement, made on April 17, marks a significant shift in Upbit's business strategy. The discontinuation of Ten&Ten's services, used for transaction processing as of April 15, presents a critical development. Users have until April 22 at 23:00 Korea Standard Time to withdraw their digital assets, underscoring the urgency of the situation. This move reflects the historical volatility and sudden regulatory changes inherent in the digital currency realm.

Upbit Navigates Volatile Markets and Regulatory Changes Amid Rising Global Crypto Scrutiny

Upbit's decision coincides with volatile market dynamics and increased regulatory scrutiny both in South Korea and globally. A recent report from the European Union ranked Upbit second in the digital currency exchange market, with substantial trading volume trailing only Binance. Additionally, the South Korean won recently surpassed the US dollar in centralized exchange trading volume, reaching approximately $456 billion.

South Korea's financial markets are undergoing stricter oversight, with new guidelines for token listings on centralized exchanges expected by late April or early May. These regulations will prohibit the listing of unresolved digital asset cases stemming from hacking incidents. Such measures align with broader efforts to enhance security and reliability in crypto markets, safeguarding investors and market integrity.

Meanwhile,Despite Upbit's reduction in large transactions, the overall crypto market remains robust. Additionally, the approval of three Bitcoin exchange-traded funds (ETFs) by Hong Kong's financial regulatory authority is expected to further invigorate the market, impacting regulatory analyses worldwide.

Adapting to regulatory changes and market volatility, Upbit's strategic adjustments, including the current suspension, will be crucial for maintaining compliance and market position sustainability.