South Korea investigates Upbit over market dominance concerns
South Korea investigates Upbit over market dominance issues South Korea investigates Upbit over market dominance issues
A South Korean lawmaker raised issues about the exchange shut relationship with Okay Bank.
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South Korea’s Monetary Services Payment (FSC) is determined to examine Upbit, the nation’s largest crypto buying and selling platform, amid issues about its dominant bid available within the market, as reported by native media outlet einfomax on Oct. 10.
FSC Chairman Kim Byung-hwan confirmed the probe, noting that the agency will focal level on about the digital asset market’s reliance on Upbit.
The circulate follows issues raised by lawmaker Lee Kang-il about Upbit’s relationship with Okay Bank, South Korea’s first info superhighway-easiest financial institution.
Okay Bank, launched in 2017, is reportedly preparing for an Initial Public Offering (IPO) to rob 984 billion obtained (round $731.64 million). If a success, it may well per chance most likely maybe well be amongst the foremost IPOs in 2024. Meanwhile, Upbit remains South Korea’s largest crypto exchange by buying and selling volume and an excellent deal influences the broader Asian market.
Concerns over Upbit’s dominance in Okay Bank’s deposits
Lee Kang-il revealed that Upbit deposits memoir for 4 trillion obtained of Okay Bank’s 22 trillion obtained in entire deposits, making up on the realm of 20%. He warned that a disruption in Upbit’s operations may well well well bid off a financial institution whisk on Okay Bank.
Lee also criticized Okay Bank for providing excessive interest ratesâ2.1%âon Upbit customer deposits, calling the whisk unsustainable given the financial institution’s low-profit margins. He additional argued that the shut relationship between Upbit and Okay Bank contradicts the theory of preserving apart finance and industry.
In response, the FSC’s chief talked about that Okay Bank’s list path of would undergo a complete review. The Digital Asset Committee, a body overseeing digital resources in South Korea, can even focal level on about the topic.
Upbit and Okay Bank’s collaboration
This investigation comes now not as a lot as a month after Dunamu, Upbit’s parent firm, Okay Bank, and BC Card signed a memorandum of working out (MOU) to ascertain a cooperative digital financial products and companies mannequin.
The agreement will leverage Dunamu’s digital asset buying and selling platform, Okay Bank’s mobile banking infrastructure, and BC Card’s payment processing systems.
The collaboration objectives to force the enhance of South Korea’s digital financial ecosystem by combining the strengths of every firm’s skills and products and companies.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's doable. He imparts insights on a unfold of topics fancy DeFi, hacks, mining and custom, underlining transformative energy.
Liam 'Akiba' Wright
Continuously identified as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized skills has the doable to accomplish standard sure change.
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