Upbit Tightens Internal Crypto Trading Ahead Protection Act Implementation

David Pokima
July 18, 2024 Updated September 27, 2024
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Breaking: Crypto Market Braces for Crash As S. Korea FSC Investigates Upbit

Highlights

  • Upbit rolls out its first transparency report in South Korea.
  • The exchange restricts trading for employees, blood relatives, and executives.
  • This is in line with the implementation of VAUPA to promote fair trading.

Digital asset exchange, Upbit published a financial transparency report to provide fair and trustworthy crypto services. This aligns with the Virtual Asset User Protection Act (VAUPA) to be implemented on July 19. South Korea and other global regulators continue ramping up crypto regulation efforts.

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Upbit Tightens Crypto Rules

Upbit has tightened crypto trading rules for certain scenarios through Dunamu, the exchange operator. In a recent release, the company announced its transparency report for the first time. According to the statement, self-regulation would be applied to prevent the use of undisclosed information.

In line with Article of the Specific Finance Information Act, employees and executives of the exchange cannot trade virtual assets through the service. Furthermore, Upbit restricts crypto trading to blood relatives or immediate family of employees to maintain fair and balanced trading services. An overview of the report shows directives to prevent insider trading, promotion of fair trading, risk assessment through Know Your Customer (KYC) Regulations, prevention of price manipulation, etc.

The report also includes Dunamu’s efforts to prohibit price manipulation within Upbit. A representative example is the ‘Upbit Market Oversight (UMO)’ system.UMO was built to fulfill the market surveillance obligations of virtual asset exchanges, which are being strengthened by the enforcement of the User Protection Act.”

Upbit disclosed that the transparency report will be released every year to maintain policies. Lee Seok Woo Dunamu’s CEO noted that user safety and market stability are top priorities for the exchange stating steps to achieve same.

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South Korea Ramps Up Rules 

This announcement comes on the heels of the VAUPA implementation on July 19. The rules mandate crypto exchanges to create monitoring systems to prevent fraudulent transactions and price manipulation in South Korea. VAUPA was passed into law last year setting a new standard to promote fair trading standards among digital asset exchanges. Like Upbit, other crypto firms in South Korea have also begun VAUPA implementation. This is in line with global regulatory efforts to curb digital asset fraud in the financial market.

Also Read: USDT, USDC, Face Danger As BIS to Permit Only Permissioned Stablecoins

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.