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South Korea’s Financial Services Commission (FSC) is acceptable to analyse Upbit, the nation’s largest crypto trading platform, amid concerns astir its ascendant presumption successful the market, arsenic reported by section media outlet einfomax connected Oct. 10.
FSC Chairman Kim Byung-hwan confirmed the probe, noting that the bureau volition analyse the virtual plus market’s reliance connected Upbit.
The determination follows concerns raised by lawmaker Lee Kang-il astir Upbit’s narration with K Bank, South Korea’s archetypal internet-only bank.
K Bank, launched successful 2017, is reportedly preparing for an Initial Public Offering (IPO) to rise 984 cardinal won (around $731.64 million). If successful, it would beryllium among the largest IPOs successful 2024. Meanwhile, Upbit remains South Korea’s largest crypto speech by trading measurement and importantly influences the broader Asian market.
Concerns implicit Upbit’s dominance successful K Bank’s deposits
Lee Kang-il revealed that Upbit deposits relationship for 4 trillion won of K Bank’s 22 trillion won successful full deposits, making up astir 20%. He warned that a disruption successful Upbit’s operations could trigger a slope tally connected K Bank.
Lee besides criticized K Bank for offering precocious involvement rates—2.1%—on Upbit lawsuit deposits, calling the complaint unsustainable fixed the bank’s low-profit margins. He further argued that the adjacent narration betwixt Upbit and K Bank contradicts the rule of separating concern and industry.
In response, the FSC’s main stated that K Bank’s listing process would acquisition a broad review. The Virtual Asset Committee, a assemblage overseeing digital assets successful South Korea, volition besides analyse the matter.
Upbit and K Bank’s collaboration
This probe comes little than a period after Dunamu, Upbit’s genitor company, K Bank, and BC Card signed a memorandum of knowing (MOU) to found a cooperative integer fiscal services model.
The statement volition leverage Dunamu’s virtual plus trading platform, K Bank’s mobile banking infrastructure, and BC Card’s outgo processing systems.
The collaboration aims to thrust the maturation of South Korea’s integer fiscal ecosystem by combining the strengths of each company’s exertion and services.
The station South Korea investigates Upbit implicit marketplace dominance concerns appeared archetypal connected CryptoSlate.
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