Upbit halts transactions over 1 million Korean won temporarily in wake of Ten&Ten service suspension

Upbit, a major player in South Korea's bustling cryptocurrency exchange scene, has taken the temporary measure of suspending deposits and withdrawals that surpass the 1 million Korean won mark (equivalent to $721).

This strategic move, detailed in an official announcement unveiled on April 17th, responds to adjustments made within Ten&Ten's operations, a prominent local Virtual Asset Service Provider (VASP) specializing in facilitating substantial transactions.

Upbit Halts High-Value Transactions

With immediate effect, Upbit has decided to temporarily halt the processing of deposits and withdrawals exceeding 1 million Korean won. This strategic move comes in response to the recent suspension of Ten&Ten’s Travel Rule Solution service, a pivotal element that empowered Upbit to facilitate high-value cryptocurrency transactions.

South Korea’s adoption of the FATF crypto travel rule encompasses regulations on transactions conducted among individuals while also leaving self-hosted or non-custodial wallets without specific guidelines. Consequently, South Korea has instituted a minimum threshold of 1 million won for adherence to the Crypto Travel Rule. This mandates that all virtual asset service providers (VASPs) within South Korea comply with these regulatory measures.

In alignment with these regulations, Ten&Ten ceased its transactional support as of April 15, thereby prompting Upbit to take proactive measures and inform its user base. Users impacted by this suspension are strongly encouraged to finalize any necessary transactions before April 22nd at 10:00 a.m., Korea Standard Time, to mitigate any potential inconvenience.

The cessation of Ten&Ten's services marks a pivotal moment for Upbit and its users, affecting the exchange's capacity to handle extensive cryptocurrency transactions effectively.

To address this change, Upbit has taken steps to minimize disruptions and maintain uninterrupted service, all while complying with regulatory standards. This adjustment aligns with ongoing regulatory changes in South Korea's cryptocurrency landscape. Recent data highlights a significant trend, with the South Korean won (KRW) outpacing the US dollar (USD) in crypto-fiat trading volume in the first quarter of 2024.

Transactions in Korean won on centralized exchanges exceeded $456 billion, slightly surpassing the cumulative volume denominated in U.S. dollars, which totaled around $455 billion.

Korean Authorities Plan Stricter Guidelines

South Korea is poised to enact tighter regulations to streamline the token listing procedures on cryptocurrency exchanges. Recent reports suggest that the nation's financial authorities are in the final stages of crafting guidelines to support virtual asset trading. These guidelines are anticipated to be revealed by the end of this month or early next month.

The Financial Supervisory Service (FSS), the regulatory body overseeing South Korea's financial sector, has led the development of these listing guidelines since the latter part of last year. Working closely with industry entities like the Digital Asset Exchange Association (DAXA), the FSS seeks to establish rigorous standards to enhance investor protection and promote market transparency.

A recent survey undertaken by the Korea Women’s Policy Institute has brought to light a significant shift in the perceptions of young South Koreans regarding the national pension system. This comprehensive survey targeted individuals aged 20–39 and has revealed a widespread sense of disillusionment with government-provided pensions.

Remarkably, over three-quarters of respondents expressed a profound lack of trust in the system. The reasons cited for this skepticism are manifold, ranging from concerns about escalating insurance premiums to uncertainties surrounding the long-term viability of the National Pension Service (NPS), particularly in the face of demographic challenges like population decline.

Given these apprehensions, a growing number of young South Koreans are seeking out alternative avenues for investment in order to safeguard their financial futures. This includes a notable trend towards exploring stocks and cryptocurrencies as viable options.

In fact, more than half of the survey participants have indicated their preference for building their retirement funds through investments in these alternative assets. This paradigm shift underscores a clear departure from traditional pension schemes, indicating a broader trend among younger demographics towards embracing more dynamic and self-directed approaches to financial planning.