Major

Major South Korean cryptocurrency exchange Upbit reportedly faces a monopoly investigation from local financial regulators.
South Korea’s Financial Services Commission (FSC) plans to investigate Upbit exchange for potential anti-monopoly breaches, the local news agency Infomax <a data-ct-non-breakable="null" href="https://news.einfomax.co.kr/news/articleView.html?idxno=4327737" rel="null" target="null" text="null" title="null">reported</a> on Oct. 9.
Founded in 2017, Upbit is one of the largest crypto exchanges in South Korea and globally, with roughly $1.2 billion in daily trades, <a data-ct-non-breakable="null" href="https://www.coingecko.com/en/exchanges" rel="nofollow noopener" target="_blank" text="null" title="https://www.coingecko.com/en/exchanges">according</a> to CoinGecko.
<h2 id="investigation-tied-to-upbit-s-relationship-with-k-bank">Investigation tied to Upbit’s relationship with K-Bank</h2>
During an audit by the South Korean parliament, the National Assembly, lawmaker Lee Kang-il reportedly expressed concerns about Upbit’s market monopoly and its relationship with online bank K-Bank.
He raised the issue of Upbit’s funds accounting for a significant portion of K-Bank’s deposits, posing a potential bank-run risk.
FSC Chairman Kim Byung-hwan <a data-ct-non-breakable="null" href="https://www.yna.co.kr/view/AKR20241010078700002" rel="null" target="null" text="null" title="null">said</a> that he was aware of Upbit’s potential monopoly issue and that the FSC would investigate Upbit’s structure in response to Lee’s concerns.
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 <img alt="Policy" src="https://s3.cointelegraph.com/uploads/2024-10/019276a3-7ea4-76e6-bd1d-c24523a0dec4" title="">
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 FSC chairman Kim Byung-hwan at the the authority’s state audit. Source: News1
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“We implemented the Electronic Financial Transaction Act on Sept. 15, and we will check the situation after the system is implemented,” Kim said.
<h2 id="up-to-70-of-k-bank-s-deposits-were-reported-to-be-tied-to-crypto-in-late-2023">Up to 70% of K-Bank’s deposits were reported to be tied to crypto in late 2023</h2>
K-Bank, which has been a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/upbit-s-main-banker-targets-2022-ipo-amid-massive-crypto-user-on-boarding" rel="null" target="null" text="null" title="null">major banker of Upbit</a> since at least 2021, <a data-ct-non-breakable="null" href="https://www.bloomberg.com/news/articles/2024-09-10/korean-online-lender-k-bank-plans-ipo-of-up-to-732-million" rel="null" target="null" text="null" title="null">filed</a>&nbsp;for an initial public offering in Seoul in September. The offering could raise as much as $732 million, making it the biggest South Korean public listing in almost three years.
The bank’s ties with cryptocurrency exchanges must have been an issue for a while, as local reports in November 2023 <a data-ct-non-breakable="null" href="https://www.kapronasia.com/blockchain-research-menu-item/does-k-bank-have-a-sound-business-model.html" rel="null" target="null" text="null" title="null">indicated</a> that as much as 70% of K-Bank’s deposits were linked to crypto.
Concerns over Upbit’s connection with K-Bank have also repeatedly surfaced in South Korean media, with some reports&nbsp;<a data-ct-non-breakable="null" href="https://www.ledgerinsights.com/korea-kbank-deposits-crypto-exchange-upbit/" rel="null" target="null" text="null" title="null">suggesting</a>&nbsp;that Upbit’s market share in the country is more than 80%.
Despite the latest reports on the alleged investigation into Upbit, the crypto exchange has not publicly addressed the issue as of this writing.
<figure>
 <img alt="Policy" src="https://s3.cointelegraph.com/uploads/2024-10/019276bc-4ac0-7616-be17-32451896387b" title="">
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 Source: <a data-ct-non-breakable="null" href="https://x.com/upbitglobal/status/1844258859021729864" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/upbitglobal/status/1844258859021729864">Upbit Global</a>
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On Oct. 10, Upbit Global notified its users on X that the trading platform would perform scheduled server maintenance on Oct. 14, temporarily suspending crypto withdrawals and deposits.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/insane-satoshi-podcast-created-in-seconds-crypto-ai-outperform-memecoins-ai-eye/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/insane-satoshi-podcast-created-in-seconds-crypto-ai-outperform-memecoins-ai-eye/">Insane Satoshi podcast created in seconds, Crypto + AI outperform memecoins: AI Eye</a>

South Korean Upbit crypto exchange faces monopoly probe

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