South Korea’s Upbit Exchange Tightens Deposit Limits and KYC Requirements — A Drastic Change for Crypto Traders
Upbit’s New Deposit Limit Policy Starting 2024
South Korea’s largest cryptocurrency exchange, Upbit, has announced significant changes set to take effect from January 1, 2024. According to the latest guidelines formulated by the Bankers Association, Upbit will halve the daily deposit limits for accounts held with the online-only bank Kbank. The decision comes as part of broader efforts to adhere to the “Virtual Asset Real Name Account Operation Guidelines.”
Further reading：South Korea: The Undisputed “Crypto Trading Capital”
Impact on Unverified Users
In a move that will considerably impact the exchange’s operations, users who have not completed bank customer verification (KYC — Know Your Customer) will face restrictions on Korean Won deposits and withdrawals on Upbit. This measure aligns with South Korea’s increasing regulatory scrutiny over the crypto market.
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Adjustment in Deposit Ceilings
The current deposit limit stands at 10 million Korean Won per account per day (approximately 7,615 USD). Post the new regulations, this will be reduced to 5 million Korean Won (around 3,807 USD). Upbit emphasizes the importance of customer compliance with the verification process at Kbank to avoid limitations or termination of deposit and withdrawal rights.
Regulatory Shifts in South Korea’s Crypto Market
South Korea has long been a hotbed for cryptocurrency trading. However, following several crypto custody platforms’ collapses in recent months, the Korean government has intensified its regulatory efforts. In July, the South Korean National Assembly passed “the Act on the Protection of Virtual Asset Users” to strengthen investor protections. This law, consolidating 19 crypto-related bills, is set to be enforced from July 2024.
Further reading：South Korea’s Digital Currency Pilot: 100,000 Citizens to Test CBDC in 2024
Establishment of Virtual Asset Regulatory and Investigative Bureaus
In response to the significant growth of the virtual asset market, South Korea’s Financial Supervisory Service announced on November 29 the establishment of two new bureaus: the “Virtual Asset Regulatory Bureau” and the “Virtual Asset Investigation Bureau.” The Regulatory Bureau will oversee virtual asset operators, including supervision, inspections, market monitoring, and systemic improvements. The Investigation Bureau will focus on combating market disruptions and safeguarding users from illegal trading and market manipulation.
Further reading：South Korea’s Telecom Giant SKT Sets Sights on Web3 Market: 30 Million Users to Make the Leap?
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Keywords: Upbit, South Korea, Cryptocurrency, Deposit Limits, KYC, Virtual Asset Regulation, Bankers Association, Financial Supervisory Service, Virtual Asset User Protection Law, Crypto Market Regulation
