South Korean Exchange Upbit Suspends Crypto Transactions Over $721

South Korean crypto exchange Upbit has halted deposits and withdrawals of digital assets worth over 1 million won ($721) following the suspension of services by Ten&Ten, a local virtual asset service provider that facilitated such transactions on Upbit's platform. This decision comes as Upbit takes measures to address the impact of Ten&Ten's service disruptions.

South Korea's Upbit Halts Cryptocurrency Transactions Exceeding 1 Million Won

In a significant development within the South Korean cryptocurrency landscape, the prominent exchange Upbit has announced the suspension of deposits and withdrawals for digital assets valued at over 1 million won ($721). This decision stems from the recent suspension and termination of services provided by Ten&Ten, a local facilitator of deposits and withdrawals and a registered virtual asset service provider (VASP).

Upbit's announcement on April 17th cited the cessation of Ten&Ten's Travel Rule Solution service as the primary reason for the suspension. The Travel Rule, implemented by the Financial Action Task Force (FATF), mandates VASPs to exchange information about the sender and recipient of virtual asset transfers exceeding certain thresholds, enhancing transparency and compliance in the cryptocurrency ecosystem.

With the suspension of Ten&Ten's services, Upbit has temporarily halted deposits and withdrawals for cryptocurrency transactions above 1 million won. However, withdrawals will remain operational until April 22nd at 10:00 AM Korea Standard Time, accommodating users who wish to move their funds before the suspension takes full effect. Ten&Ten had previously facilitated a substantial portion of Upbit's deposits and withdrawals exceeding 1 million won.

Upbit's move highlights the interconnected nature of the cryptocurrency industry, where the actions of one service provider can have ripple effects across the ecosystem. Other VASPs that permit deposits and withdrawals above 1 million won include Borabit, Coredocs, GDAC, Hanbitco, Qbit, Korea Digital Asset Trust, Oasis Exchange, and Prabang.

Despite this temporary suspension, Upbit remains a dominant player in the South Korean cryptocurrency market. According to a recent study, Upbit ranked second in market share within the European Union (EU) with a trading volume of 528.57 billion. The study, released on April 10th, placed Binance at the top of the rankings.

In a notable development, the volume of cryptocurrency transactions denominated in South Korean won surpassed that of the US dollar in the first three months of 2024. Kaiko statistics indicate that the total value of transactions in Korean won on centralized exchanges exceeded $456 billion, while transactions in US dollars amounted to approximately $455 billion.

Upbit's 24-hour trading volume has experienced a decline since the beginning of April, dropping to $3.8 billion from a peak of $15 billion in early March. This decrease mirrors a broader market trend, with many cryptocurrencies experiencing price fluctuations and volatility in recent weeks.

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