Korea Financial Services Commission (FSC) Investigate Upbitthe country’s largest cryptocurrency exchange.
The goal of financial regulators is to Revealing the exchange’s operating structure and monopoly on South Korea’s crypto asset market.
The sudden move by Upbit comes at a time when the broader cryptocurrency market is in trouble, with Bitcoin and Ethereum facing steep price drops. Recent developments have raised concerns about further pressure on market prices.
South Korean financial regulator investigates Upbit cryptocurrency exchange market monopoly
South Korea’s financial regulator, the Financial Services Commission, has launched an investigation into Upbit, the country’s largest cryptocurrency exchange.
The move comes after the National Assembly state audit. Democratic Party member Lee Kang-il said during the meeting Highlighting South Korea’s Growing Monopoly in Cryptocurrency Sector.
The lawmaker expressed concerns about Upbit’s dominance in the country’s cryptocurrency space. Lee Kang-il mentioned that Upbit uses its cooperation with K-Bank to strengthen its market dominance. He pointed out, The relationship between the two entities violates the principle of financial and industrial distinction.
The lawmaker once again pointed out that Upbit holds a large portion of K-Bank’s deposits as the bank prepares for its upcoming IPO (initial public offering).
Representative Lee said: “Of K Bank’s 22 trillion won in deposits, Upbit deposits account for 4 trillion won, or 20%. If Upbit transactions are cut off, a run on K Bank will occur.”
In addition, the congressman also slammed some of K-Bank’s operations and special incentives for Upbit customers. He explained that although The bank’s operating profit margin is less than 1%, but it still provides Upbit customers with a 2% deposit interest rate.
FSC Chairman Kin Byung-hwan responded to the MP’s claims. First, Kim acknowledged Upbit’s monopoly structure in the country’s crypto ecosystem.
Kim also revealed that the committee has conducted an in-depth review of Kasikornbank’s listing. However, he promised regulators would Another comprehensive review by the Virtual Assets Committee.
Upbit is South Korea’s largest cryptocurrency exchange with more than 80 million users. The platform supports over 241 crypto assets and 372 trading pairs. There are nearly 5.72 million visits per month, and the 24-hour transaction volume exceeds US$1.18 billion..
Upbit has made significant efforts to comply with South Korea’s cryptocurrency regulatory standards. according to Virtual Asset User Protection ActIn July, the exchange implemented solid measures to eliminate insider cryptocurrency trading,
Cryptocurrency market in turmoil, could prices fall further?
Cryptocurrency markets face turmoil as bears unleash more pressure, data shows coin market cap. Bitcoin and Ethereum have lost most of their recovery value over the past few days, Most assets are in the red.
As of 06:32 AM ET on October 10, BTC has retreated from the $65,000 area and is trading at $61,031. Bitcoin has plunged nearly 2% in the past 24 hours, while the price of Ethereum is currently hovering around $2,393.
It is worth noting that in 2018, the cryptocurrency market took a major hit. Investigation surrounding Upbit executives’ suspected fraud.
As a result, many are concerned that while cryptocurrency exchanges gain greater dominance globally, the recent investigation could have a huge impact on the cryptocurrency landscape.
