Upbit’s crypto traders face Lunar New Year disruption
Customers of South Korea’s leading cryptocurrency exchange, Upbit, will face a possible three-day shutdown over the New Year holidays as banking partner K-Bank moves operations to its new headquarters.
Upbit crypto traders are facing Lunar New Year disruption
Korean banks and corporations across East Asia will be closing their brick-and-mortar branches from Monday, January 31st to February 2nd.
According to Segye Ilbo, K-Bank will move its entire IT center from the Sangam district of Seoul across the city to a new location in Mokdong. K-Bank works with Upbit and offers all Fiat increase / decrease services. Korean law requires that all cryptocurrency transactions through a cryptocurrency exchange be conducted through a bank-provided, real-name authenticated bank account – which means that withdrawals from KRW deposits and deposits can be limited to 3 days.
Upbit’s problems in partnership with K-Bank
In a way, Upbit seems to be a victim of its own success in this area. According to the K-Bank, many new customers had to move. With Upbit becoming a leader in the domestic market over the past 12 months, K-Bank is struggling to meet demand for new accounts.
The bank almost increased its user base in the past year. At the end of 2020, K-Bank had fewer than 5 million account holders. It had fewer than 7.2 million customers at the end of 2021.
Multiple media outlets have reported that Upbit may have cornered 70-80% of the domestic crypto market and its operator has set out to expand overseas into more competitive markets. . The IPO was also supported by analysts, although the company neither confirmed nor denied its intentions. Market experts say the company is likely to go public in New York as it is too big for the domestic stock market.
At one point last year, the partnership created an “emergency” in the management of the K-Bank’s loan-to-deposit ratio, with loans, mortgages and other services faring significantly worse than crypto deposit and withdrawal services.
K-Bank said it had decided to relocate its IT unit in order to “upgrade the level of its IT infrastructure,” adding that “its customer base is due to the recent launches of many new products and the partnership with Upbit has grown rapidly “.
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