Upbit, one of the largest cryptocurrency exchanges in South Korea, is halting the inflow and outflow of digital assets, surpassing 1 million Korean won (about $721) temporarily. It is a direct consequence of operational shifts at the VASP (virtual asset service provider) of the company, Ten&Ten. More precisely, Upbit highlighted the temporary interruption of the Travel Rule Solution service provided by Ten&Ten as a key factor influencing its decision to terminate the relationship. The stoppage is effective at once and impacts a large proportion of the exchange’s customer base.
Upbit’s announcement dated 17 April has been a considerable turning point in its business strategy. The cessation of services of Ten&Ten, which was used for transaction processing on April 15, consists of a case. Users have until April 22 at 10:At 23:00 Korea Standard Time, they are announcing it as the last hour to pull out their digital assets, reflecting the necessity of the situation. This shift characterizes the historical volatility as well as abrupt laws and regulations in the digital currency world.
Upbit ranks second in EU market report
The statement from Upbit coincides with volatile market dynamics and a regulator’s increased focus within the South Korean region and all over the world. In a recent report, the European Union included Upbit in second place regarding the digital currency exchange market. The trading volume is considerable, about 528.57 billion, just tied behind Binance. Along another path, a few days ago, the South Korean won recorded an impressive feat in centralized exchanges, exceeding the trading volume of the United States dollar at about $456 billion.
The financial markets of South Korea are undergoing stricter oversight, which will materialize in the form of new guidelines for the listing of tokens on centralized exchanges by the end of April or early May. Such regulations will specify the prohibition of listing unresolved cases of digital assets that could have been generated via hacking. This tightening of laws echoes much broader efforts to strengthen the security and reliability of the crypto markets by means of protecting investors and securing market integrity.
Bitcoin sets new record, surpasses $69,200
Upbit’s scale-down on large transactions may signify a bigger picture, which is the broader market trend that is currently evident in the cryptocurrency market. Upbit’s trading volume started to shrink from $3.8 billion down to $15 billion as crowded as March of this month, but the whole market remains healthy.
The all-time high of Bitcoin contributed to the creation of an enormous liquidity volume. Cryptocurrency markets behave in such instability that their nature as dynamic markets is justified. They are subject to the changing environment created by regulatory decisions and technological developments.
In addition, the Hong Kong financial regulatory authority has approved three spots for Bitcoin exchange-traded funds (ETF), with their launch dates planned for about two weeks. This is one more layer, and the spread of innovations in this space is likely to propel the vitality of the crypto market, thereby impacting other markets and regulatory analysis across the world. Complying with the regulatory changes along with the Market volatility, the approach Upbit takes in its strategic change, especially the current suspension, will be important to its sustainability of compliance and market position.
