Recently, the South Korean cryptocurrency Upbit exchange was at the center of regulatory controversy. Upbit – the only major stock exchange in Korea, which has not supported the self-regulation rules adopted by other exchanges, on the recommendation of the government. Its agreement with Bittrex raises the question of whether these standards are, in principle, be applied to it. In addition, the exchange is facing internal problems and customer complaints.
Upbit is a subsidiary of Kakao Talk, the developer of the large-scale application for the trading of securities via private messages in South Korea and around the world, which is installed on more than 95% of all smartphones in the country.
More than 120 of cryptocurrencies traded on the platform thanks to a partnership with the American stock exchange Bittrex. Offering the largest selection of cryptocurrency in Korea using Kakao Talk user base, Upbit became the fastest growing stock exchange in the country since its launch
in October of this year.
At the time of writing the article on the exchange website display a daily trading volume of bitcoin amount in BTC 44 040 – more than the largest stock exchange of the country Bithumb where over the same period, trading volume was about 20 to 250 BTC.
«However, there are fears that Upbit, which is the number one player in Korea, will not participate in self-initiated Blockchain Association» — according to Inews24, adding that this could undermine the efforts of other participants in the industry.
Korean Blockchain Industry Association announced last Friday on measures of self-regulation, created on the recommendation of the government. 14 exchanges stated that it will accept the change. Among them the largest stock exchanges of the country — Bithumb, Coinone and Korbit. The article says:
«Upbit is not a member Blockchain Association and not obliged to observe the rules. Upbit was not involved in the joint statement on self-regulation, released by the major exchanges.»
According to the Association, Upbit was informed about the regulation, but the exchange has not confirmed its accession to the group.
«Currently, we are considering the norms of self-regulation, and has not yet made a decision on accession to the Association»,- quotes the official statement Newspim Upbit.
If Upbit not join the Association and will abide by the rules of self-regulation, this will cause inequality between exchanges. In addition, other exchanges may follow suit and withdraw from the Association, making the regulation useless.
«Since the government is monitoring the cryptocurrency market, the industry is trying to change its negative image through self-regulation,» — says the official representative of one of the exchanges. He also expressed concern that the failure Upbit can cause increased attention of the government to the industry. Kim Jin-Hwa (Kim Jin-hwa), one of the leaders of the Association, said:
«Upbit operates by importing the coins was on the American stock exchange Bittrex, which is different from a typical local exchange. Unclear whether it it be applied the same rules as other exchanges.»
At the same time, Upbit has already started to comply with the government ban on the registration and maintenance of minors. Monday on its website, the company issued a notice that requires was underage users stop trading and withdraw funds from the exchange until December 31.
Technical problems Upbit
Since the launch in October of this year on the platform Upbit constantly had problems. According to local publications, in November, customers began to complain about missing funds and transaction errors. The exchange acknowledged the existence of problems, issuing a statement Monday, which said: «currently, we are doing everything possible to stabilize the transaction.»
However, one of the users Upbit on Tuesday said the publication Etoday, «this is not a problem of the server, and manipulation». He added that plans submit to the exchange in the court and claim compensation. Another user said that he bought the bitcoins to 3 million won, but in his account there were coins only 1.8 million won. Reportedly, other clients also face similar problems.
Upbit explained: «We delay the display of the BTC market because of the increasing volume of visitors and orders». The company also issued a notice, which reads:
«Currently, requests Kakao Talk are growing rapidly, and to react efficiently to difficult. We temporarily stop transaction support for new members Upbit… Previously registered participants will be able to perform all transactions without any changes».