Upbit, one of South Korea's leading cryptocurrency exchanges, has announced plans to halt deposits and withdrawals of digital assets exceeding 1 million won ($721). This decision follows changes at virtual asset service provider (VASP) Ten&Ten, a local deposit and withdrawal service provider. Upbit cited the suspension and termination of Ten&Ten’s Travel Rule Solution service as the primary reason for this move. Ten&Ten ceased trading support on April 15, with the deadline for withdrawing crypto assets set for April 22 at 10:00 AM KST.
Ten&Ten played a crucial role in enabling cryptocurrency exchanges to facilitate deposits and withdrawals exceeding 1 million won. Other VASPs allowing transactions above this threshold include Bblock, Gopax, FlatExchange, and several others. The European Union's recent report ranked Upbit as the second-largest company by market share, with a trading volume of approximately $528.57 billion, trailing only behind Binance.
In the first quarter of 2024, South Korean won’s cryptocurrency trading volume surpassed that of the U.S. dollar, marking a significant milestone. Data from Kaiko indicates that the Korean won’s total trading volume on centralized exchanges exceeded $456 billion, slightly surpassing the cumulative trading volume of approximately $455 billion for the U.S. dollar. South Korean financial authorities are expected to release new guidelines by late April or early May, imposing stricter regulations on token listings on centralized cryptocurrency exchanges.
These regulations will include a ban on listing digital assets involved in hacks unless a thorough investigation into the root cause has been conducted. Upbit's 24-hour trading volume experienced a notable decline, dropping to $3.8 billion in early April after peaking in early March. On March 5, the exchange witnessed its highest daily trading volume of nearly $15 billion, coinciding with Bitcoin's surge to an all-time high of $69,200.
Meanwhile, in Hong Kong, the financial regulator has reportedly approved three spot Bitcoin exchange-traded funds (ETFs), expected to list on the Hong Kong Stock Exchange in approximately two weeks. This development underscores the growing acceptance and adoption of cryptocurrency-based financial products in global markets.
