So, let’s take a look at some more fallout from the Big Korean Crypto Exchange Cull.
UPbit — the first Korean exchange to get a green light from the government — has been really busy verifying the identities of its 8.3 million users.
From the Korea Herald:
“Industry watchers believe UPbit’s user verification could take as long as three months due to its massive user base of 8.3 million and a public ID verification system operated by the Ministry of the Interior and Safety. The ministry’s identity verification system is known to process 3 to 15 verifications per second.”
Ouch.
UPbit will also be rejecting Korean won transactions of over KRW 1 million from Wednesday. That’s tomorrow.
Meanwhile, a lawmaker claimed last week that UPbit has delisted 48% of its coins since the exchange launched its beta service in 2017. Some 7.78% of UPbit’s profits came from these coins, a fact the lawmaker used to accuse the exchange of making money from shitcoins while users took a bath.
For its part, UPbit says it only lists safe digital assets and monitors projects to make sure they meet certain standards. When they don’t, they get delisted. It also rejected accusations that it takes money for listing coins.
And as if UPbit weren’t having enough fun already, Financial Services Commission chairperson Koh Seungbeom said last week his people would take a good look at UPbit to make sure its business methods sufficiently protected investors.
Koh was responding to accusations that UPbit has a virtual monopoly on trading digital assets in Korea. According to data provided by one opposition party lawmaker, UPbit had an 80% market share as of September.
Koh also told lawmakers that his organization would discuss ways to minimize harm to users owing to the listing and delisting of coins.
Meanwhile, the Financial Intelligence Unit said Monday that deposits from the recently closed exchanges are being returned smoothly. Not even one report of somebody making off with money.
Though not exactly policy related, but nonetheless interesting, Bithumb Korea has been making bank due to its investment in local media company Bucket STUDIO, which holds a 15% stake in a management company founded by actor Lee Jung-jae of “Squid Game” fame.
And while not exactly exchange related, Financial Supervisory Service Governor Jeong Eun-bo told lawmakers last week that systemic standards were needed in regards to NFTs to reflect international trends. However, Finance Minister Hong Nam-ki told lawmakers that NFTs would not be subject to the coming tax on crypto gains.
