Upbit Suspends Transactions Over 1 Million KRW After VASP Updates – Latest Update

Upbit Suspends High-Value Transactions

Upbit, one of South Korea’s largest cryptocurrency exchanges, has temporarily suspended deposits and withdrawals exceeding 1 million Korean won ($721). This decision follows modifications to the operations of Ten&Ten, a local VASP facilitating high-value transactions.

Background

Effective immediately, Upbit has announced the suspension of processing deposits and withdrawals exceeding 1 million Korean won. This decision is attributed to the recent suspension of Ten&Ten’s Travel Rule Solution service, a crucial component that enabled Upbit to facilitate high-value crypto transactions.

Regulatory Compliance

South Korea’s implementation of the FATF crypto travel rule includes regulations on transactions among individuals while leaving self-hosted or non-custodial wallets without specific rules. As a result, South Korea has established a minimum threshold of 1 million won for compliance with the Crypto Travel Rule. This means that all virtual asset service providers (VASPs) in South Korea are required to comply with these regulations.

Impact on Users

Affected users are advised to complete necessary transactions before April 22 at 10:00 a.m., Korea Standard Time, to avoid any inconvenience. The termination of Ten&Ten’s services represents a significant development for Upbit and its user base, as it impacts the exchange’s ability to process large-scale crypto transactions efficiently.

Regulatory Developments

Recent reports indicate a notable shift in South Korea’s cryptocurrency ecosystem, with the South Korean won surpassing the US dollar in crypto-fiat trading volume during the first quarter of 2024.

South Korean Authorities Prepare Tighter Guidelines

South Korea is on the verge of implementing stricter regulations to refine the token listing process on cryptocurrency exchanges. The country’s financial authorities are finalizing virtual asset trading support guidelines, expected to be unveiled soon.

Alternative Investment Trends

In light of concerns about the national pension system, many young South Koreans are turning to alternative investment avenues, including stocks and cryptocurrencies, to secure their financial futures.