KEY POINTS
On April 17, Upbit, one of the prominent cryptocurrency exchanges in South Korea, revealed plans to suspend deposits and withdrawals exceeding 1 million Korean won ($723). This action follows the discontinuation of Ten&Ten’s Travel Rule Solution service, prompting Upbit’s decision.
The Significant Role Ten&Ten Played
In the past, Ten&Ten was pivotal in facilitating Upbit’s handling of cryptocurrency deposits and withdrawals exceeding 1 million won. This function was integrated into a broader ecosystem of Virtual Asset Service Providers (VASPs) that facilitate substantial transactions.
According to a recent European Union report dated April 10, Upbit ranked as the second-largest cryptocurrency exchange by market share, closely trailing Binance. Upbit prides itself on a significant trading volume, which was approximately $528.57 billion as reported.
In the initial quarter of 2024, the South Korean won achieved a significant milestone by surpassing the United States dollar in cryptocurrency trading volume. As per Kaiko’s analysis, transactions denominated in Korean won on centralized exchanges exceeded $456 billion, slightly exceeding the total volume in U.S. dollars, which stood at approximately $455 billion.
South Korea to Adopt Stringent Digital Assets Regulation Measures
Adapting to the changing environment, South Korean financial regulators are preparing to introduce stricter guidelines for token listings on centralized cryptocurrency exchanges. These regulations are anticipated to be announced by the end of April or, at the latest, in early May.
Ten&Ten, having halted its transaction support on April 15, has established April 22 at 10:00 am Korea Standard Time (KST) as the deadline for withdrawing cryptocurrency assets. Concurrently, regulators will impose a ban on listing digital assets linked to hacking incidents on domestic exchanges until thorough investigations and resolutions of the underlying causes are completed.
