By
Bena Ilyas
April 30th, 2024
Upbit experienced interesting trading trends recently. Its daily volume dropped to $3.8 billion in early April, a notable decline from its March peak.
South Korea’s leading crypto exchange Upbit temporarily suspended deposits and withdrawals of over 1 million Korean won ((KRW). The move followed Upbit’s partnership shift with Ten&Ten, a virtual asset service provider (VASP) that previously handled large transactions. The change limits high-value crypto transfers on Upbit for now.
The suspension was declared by Upbit on April 17, 2024, due to the discontinuation of Ten&Ten’s Travel Rule Solution service. Ten&Ten ceased facilitating transactions on April 15, with a final deadline for withdrawals set for April 22nd at 10:00 Korean Standard Time.
Although Upbit strives to find substitute virtual asset service providers, other South Korean exchanges like Bithumb, Coinone, Bblock, Qbit, Asset Trust (KDAC), and Korbit continue operations for substantial transactions. This transitory challenge does not undermine Upbit’s prominence in the Korean market.
Upbit’s Resilience amid Regulatory Challenges
South Korea plans to tighten rules for crypto exchanges with new guidelines aimed to improve transparency and reduce risks when listing digital assets. Upbit’s suspension shows how crypto regulations are changing in South Korea. The country’s financial regulators will enforce stricter token listing rules on centralized exchanges by the end of April or early May.
Despite the regulatory changes, South Korea’s digital asset sector remains robust. In early 2024, the Korean won overtook the US dollar for trading volume on centralized crypto exchanges. Kaiko data shows KRW transactions exceeded $456 billion, surpassing the US dollar’s around $455 billion volume during the first quarter.
This rise of the Korean won’s usage in crypto trades showcases the region’s increasing impact on the cryptocurrency market. An EU report recently placed Upbit second globally in market share, trailing only behind Binance, with an estimated share of approximately 528.57 billion, showing the won’s prominence and the growing regional crypto trading influence.
Upbit’s Trading Volume Swings amidst Partnership Changes
Upbit experienced interesting trading trends recently. Its daily volume dropped to $3.8 billion in early April, a notable decline from its March peak. On March 5, Upbit saw a remarkable $15 billion in daily trades. This spike likely aligned with Bitcoin‘s record high of $68,300 that day. The exchange’s unsteady volumes reveal the crypto market’s volatility, showing traders’ sentiments to price movements.
While Upbit handles partnership adjustments, South Korea’s crypto sector continues to evolve. Given the upcoming stricter regulations and the Korean won’s regional trading dominance, it will be interesting to see how Upbit and other exchanges face the regulatory shifts.