Cryptocurrency News
The South Korean cryptocurrency exchange affiliated with Kakao Talk has recently become the center of regulatory controversy. Upbit is the only major exchange in Korea that has not joined the other exchanges in support of self-regulation. Their agreement with Bittrex raises the question of how the regulation applies to them. Meanwhile, the exchange is having its own internal problems as customer complaints mount.Upbit is the cryptocurrency exchange integrated into South Korea’s most popular chat app, Kakao Talk, which is installed on over 95% of all smartphones in the country. Over 120 cryptocurrencies are listed on the platform, thanks to a partnership with the US-based exchange Bittrex. By offering the largest selection of cryptocurrencies in Korea and leveraging the Kakao Talk’s user base, Upbit has become the fastest-growing crypto exchange in the country since its launch in October.
The exchange’s website displays its 24-hour bitcoin trading volume as 44,040 BTC at the time of writing, which would put it ahead of the country’s largest exchange, Bithumb, which recorded approximately 20,250 BTC in the same time period.However, there are concerns that Upbit, which is the number one player in Korea, is not participating in the Blockchain Association’s self-regulation,” Inews24 reported, adding that this could undermine the industry’s efforts.
The Korean Blockchain Industry Association announced on Friday the self-regulatory measures, created at the recommendation of the government. 14 exchanges have jointly declared that they will implement the changes, including the country’s other major exchanges – Bithumb, Coinone, and Korbit. Citing “Upbit is not a member of the Blockchain Association and has no obligation to comply,”.
According to the association, Upbit was informed about the self-regulation but the exchange has not confirmed whether it would join the group. “We are currently reviewing the self-regulation and there is no decision about joining the association,” Newspim quoted an Upbit official disclosing.
If Upbit does not join the association and is not subject to self-regulation, there will be a problem with equality among domestic exchanges, the publication detailed. In addition, other exchanges may follow suit and withdraw from the association, rendering the self-regulation useless.
“As the government is watching the virtual currency trading market, the industry is trying to eliminate its negative image through self-regulation,” an exchange’s official commented. He voiced the concern that the lack of cooperation by Upbit could give negative signals to the government.
In the meantime, Upbit has already begun complying with the government’s ban on minors. The exchange posted a notice on its website on Monday informing its existing underaged customers to trade and withdraw money by December 31.