Upbit, South Korea’s largest crypto exchange, holds a strong position in the country’s financial world. It supports 214 coins and 372 trading pairs, attracting nearly 5.72 million monthly visitors with a 24-hour trading volume of $1.18 billion. However, a recent 5.6% slump in trading volume has sent shockwaves through the crypto community. And the culprit? Political interference.
What could have possibly triggered such a dramatic shift in Upbit’s fortunes? What forces are conspiring against this crypto titan? The answers lie ahead.
In response to Lee’s comments during a National Assembly audit, the Financial Services Commission (FSC) released a statement. FSC Chairman Kim Byung-hwan acknowledged the seriousness of the monopoly issue and indicated that regulatory action could be taken.
Lee also questioned the financial ties between K-bank and Upbit. He criticized K-bank for offering a 2.1% interest rate on Upbit deposits while its profit margin was less than 1%. The FSC promised a thorough investigation into these concerns through the Virtual Asset Committee.
Upbit’s Efforts to Meet Regulations
Upbit has been working to comply with South Korea’s strict crypto regulations. In July, it introduced measures to prevent insider trading, following the guidelines of the Virtual Asset User Protection Act. These efforts show Upbit’s attempt to stay compliant in a highly regulated environment.
This isn’t the first time Upbit has faced serious challenges. Back in 2018, the exchange was investigated over fraud allegations involving top executives, leading to a significant market downturn. Now, with the current political pressure, there are concerns that history could repeat itself.
The broader crypto market is already feeling the effects of the situation. Bitcoin has dropped 2.5% in the last 24 hours, falling from $62,146 to $60,628. It is now struggling to recover, sitting at $61,068.
The situation in the Ethereum market is not different. On October 6, the price of ETH was $2,440. On October 9, the market slipped from $2,440 to $2,407. Currently, the market is struggling to recover, with ETH still priced at $2,407.
The entire crypto market has taken a hit, with total market capitalization dropping 3.3% in the last 24 hours. Investors are now waiting to see how South Korea’s regulatory actions might impact the market further.
As South Korea prepares to address concerns about Upbit’s monopoly, the global crypto market could be affected. With the market already showing signs of stress, regulatory decisions from South Korea could shape the next moves in the crypto space.
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