Upbit Suspends High-Value Transactions Following Ten&Ten Service Suspension – Latest Updates and Regulatory Developments in South Korea’s Cryptocurrency Ecosystem
Upbit, one of South Korea’s largest cryptocurrency exchanges, has made a significant decision to temporarily suspend deposits and withdrawals exceeding 1 million Korean won ($721). This move comes in response to modifications in the operations of Ten&Ten, a local Virtual Asset Service Provider (VASP) facilitating high-value transactions.
The suspension of high-value transactions by Upbit was announced today following the suspension of Ten&Ten’s Travel Rule Solution service, which played a crucial role in enabling Upbit to process large crypto transactions. South Korea’s implementation of the FATF crypto travel rule includes regulations on transactions among individuals, with a minimum threshold of 1 million won set for compliance.
As a result of Ten&Ten ceasing its transaction support on April 15, Upbit has taken action to suspend processing deposits and withdrawals exceeding the specified amount. Users are advised to complete necessary transactions before April 22 to avoid any inconvenience.
The termination of Ten&Ten’s services has significant implications for Upbit and its user base, impacting the exchange’s ability to efficiently handle large-scale crypto transactions. In response, Upbit has implemented measures to mitigate disruptions and ensure continued service provision while adhering to regulatory guidelines.
This development comes amidst broader regulatory changes in South Korea’s cryptocurrency ecosystem, with recent reports indicating the South Korean won surpassing the US dollar in crypto-fiat trading volume during the first quarter of 2024. Transactions denominated in Korean won on centralized exchanges have surged past $456 billion, slightly outpacing the volume denominated in U.S. dollars.
South Korean authorities are also preparing to introduce stricter guidelines to refine the token listing process on cryptocurrency exchanges. The Financial Supervisory Service (FSS) is working with industry stakeholders to establish robust standards for virtual asset trading support, aiming to enhance investor protection and market transparency.
With young South Koreans showing a shift in attitudes towards traditional pension systems, many are turning to alternative investment avenues like stocks and cryptocurrencies to secure their financial futures. This trend highlights a growing disillusionment with state-issued pensions and a preference for more dynamic investment options among the younger demographic.
