Upbit Temporarily Halts NEAR Transactions Ahead of Network Upgrade
Upbit, one of the leading global cryptocurrency exchanges, has temporarily suspended deposit and withdrawal services for NEAR Protocol (NEAR) due to an upcoming network upgrade. The suspension that begins on August 26, 2024, is preventive to guarantee the safety and security of users’ assets during the upgrading process.
NEAR Transactions Suspension and Network Upgrade
Upbit, recently informed that the NEAR Protocol will carry out a network upgrade which means NEAR Protocol deposits and withdrawals will be temporarily stopped. This is intended to increase the blockchain’s performance and security. The suspension will take effect at the 12:00 KST on August 26, 2024, and will last until the time the exchange is sure of the network stability.
The exchange gave a specific warning to its users: any NEAR deposits made after the suspension starts might not show up in their Upbit accounts and recovery of these funds may not be possible. During the suspension, deposit and withdrawal operations will be stopped, with any that were left would be handled consequently when services resume.
In the face of the suspension of deposits and withdrawals, the NEAR trading on Upbit will be unaffected. The exchange would like to assure users that trading activities will remain normal and they would still be able to buy, sell, or exchange NEAR tokens as usual. Upbit is in collaboration with the Near Protocol team to make sure users’ assets are safe during the upgrading process.
Upbit’s Regulatory Challenges Amid Growth
The input interim suspension is issued to Upbit, which is battling through the pressure together with other cryptocurrency exchanges in South Korea, as FSS, in relation to enforcing the VAUPA, takes a special interest in the industry. In fact, the FSS has been successfully monitoring and analyzing every transaction in crypto exchanges including Upbit through its system ever since the law came into force on the 19th of July, 2024.
Upbit’s conformity with this legal framework is essential since it functions in a very restricted environment where user safety has been the first consideration. On a side note, the court in South Korea ordered Dumamu, the administrator of Upbit, to recompense a Vietnamese investor with the approximate amount of $107,000 for denying the transfer of LUNA Classic (LUNC) coins right before the Terra ecosystem crash in May, 2022.
The verdict released by the court mentioned that the investor was granted the funds due to Upbit’s lack of preparedness, the court also ordered Dumamu to pay late payment interest pointing to unjustifiable delays attributable to the failure of the broker to complete the transaction on time.
Concerns Over Upbit’s Market Dominance
Another recent report highlights another Korean lawmaker Min Byeong-deok who alleges that Upbit k is rising to become a “monopoly” being the subject of about 60% of the country’s trading volumes as of the beginning of July 2024. However, this valuation has been reduced in a short period from 80% in October 2023, despite the fact that the dominance of K Bank (the market leader) in collaboration with the market power of Upbit still raises some questions.
As Upbit steers these challenges, its actions, including but not limited to suspending NEAR transactions temporarily, emphasize Upbit’s efforts to always put customers’ safety first and regulatory compliance in the constantly changing market environment.
