Upbit, one of South Korea’s largest cryptocurrency exchanges, has announced that it will temporarily halt deposits and withdrawals of digital assets worth more than 1 million won (approximately $721). This decision was made in response to changes made by Ten&Ten, a virtual asset service provider (VASP) that facilitated the exchange’s deposit and withdrawal services.
In a blog post on April 17, Upbit explained that the suspension of Ten&Ten’s Travel Rule Solution service is the main reason behind the temporary halt. Ten&Ten ceased transaction support on April 15, and users will be able to withdraw their crypto assets until April 22 at 10:00 KST.
Upbit relied on Ten&Ten to offer crypto deposits and withdrawals exceeding 1 million won. Other VASPs that provide similar services include Bblock, Gopax, FlatExchange, Aprobit, Prabang, Borabit, BTX, Flybit, Foblegate, Bithumb, Coinone, Korbit, Coredocs, GDAC, Hanbitco, Qbit, Korea Digital Asset Trust (KDAC), and Oasis Exchange.
According to a report released on April 10 by the European Union (EU), Upbit is the second-largest cryptocurrency exchange by market share, trailing only behind Binance, with approximately 528.57 billion. Additionally, in the first quarter of 2024, the South Korean won (KRW) surpassed the U.S. dollar in terms of crypto trading volume. Kaiko data reveals that KRW transactions on centralized exchanges amounted to over $456 billion, slightly exceeding the cumulative volume of USD, which was approximately $455 billion.
In related news, South Korean financial authorities are planning to introduce new guidelines by the end of April or early May to impose stricter regulations on token listings on centralized crypto exchanges. They will also prohibit the listing of digital assets involved in hacking incidents on domestic exchanges unless a thorough investigation has determined the root cause.
At the start of April, Upbit’s 24-hour trading volume dropped to $3.8 billion after reaching a peak in March. On March 5, the exchange recorded a daily trading volume of nearly $15 billion, the highest of the year. This surge in trading volume can be attributed to Bitcoin reaching a new all-time high of $69,200 on the same day.
Furthermore, Hong Kong’s financial regulator has reportedly granted approval for three spot Bitcoin ETFs, which are expected to be listed on the Hong Kong Stock Exchange in approximately two weeks.
In other news, the price of Ethereum (ETH) is approaching a three-year low compared to Bitcoin. Many wonder if the introduction of an Ethereum ETF will help reverse this trend.