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Business & Finance

South Korean Crypto Exchange Narrowly Escapes Serious Collapse

A South Korean crypto-exchange, UPbit, that is reportedly the greatest of its kind all over South Korea, was audited thoroughly as speculations arose that accused the exchange for altering trading statistics. Authorities were sharp enough to take the wheels and initiate an entire analysis of the exchange from point zero, though the post-audit official statements state the exchange did not had any foul eye over the investors’ cash that has been pouring in quite a massive bulk.

The reports, according to Forbes, stated Korea’s major investigations authorities, the Financial Services Commission (FSC) as well as the Korea Financial Intelligence Unit (KFIU) started an entire search through the exchange’s account details and documents which they snatched away from the exchange’s grasps. The news circled around that the exchange is unable to deliver investors their due money for which the investors have purchased the cryptocurrency. The claims that the exchange is deemed “insolvent” were enough to send the authorities sniffing into the exchange’s monetary trails, leading to the easing turn out that the blame was just merely out of the blue having no sound basis.

Accounting firm, Yoojin has been appointed to dig out the claimed dirt out of the exchange’s financial details, which the firm explains that the exchange does bear more than the exact amount of recorded finance to cope with any sort of transfer from the cryptocurrency to concrete money. The firm further describes the speculations baseless though it has not released the entire research of the exchange accounts to public which still remains a matter to discuss, and possibly keeping analysts busy sketching more theories over the very matter. Now the talks are to turn controversial as people cannot prove the witnessed truth over the findings and letting the exchange folks walk free of the accusations.

As part of the raid South Korea’s financial watchdog, the Financial Services Commission (FSC), along with the Korea Financial Intelligence Unit (KFIU), seized hardware and documents from UPbit to evaluate claims from unknown sources that the exchange was insolvent.

Although many would debate over the discourse considering various theories (controversial I might add), a Korean web researcher, Dunamoo, (a subsidiary company of Korean internet giant Kakao) released a statement. Lee Seok-woo, the president of Dunamoo have put words in favour of the exchange stating,

UPbit currently has the exact amount of money held by the platform’s investors along with additional funds, more than enough to compensate every investor. Hence, UPbit is able to process withdrawals for customers upon the request of its customers and the exchange will continue to release audit reports on a regular basis to prove its solvency.

Quiet recently, the crypto-market witness various scandals and scams that have scared the authorities and large investors to keep inches away from either investing into the crypto market or approving any official reforms into the entire system. The recent Bithumb crisis led to a drop of trading volumes by 40%. This has tended to the UPbit to dominate the monetary charts all around Korea which is to stay for the time being but the Forbes analysts confirm the exchange would not last long at the top as there is strong competition that is ready to reach out and snatch away the title including the likes of “Shinhan bank backed exchange Gopax”, that is destined to top the charts.

According to Bloomberg, though the speculations were a thing imminent, stating,

Before the clampdown, South Korea was something of a ground zero for the global crypto-mania. Volume on local exchanges soared at the end of last year, with Bitcoin and other tokens fetching large premiums in the country relative to international markets. The boom alarmed officials including Prime Minister Lee Nak-yon, who said that cryptocurrencies might corrupt the nation’s youth.

As mentioned prior, either some factions are there that are against the entire concept of cryptocurrency or are cautious of the larger scale havoc that the crypto market can incur, there is always a party that tends to work against the crypto grind with or without solid reasons to back them. Thus, the only need for the crypto world is to strengthen the basis, filtering out the scammers and the fraudulent agents. This is only possible with the passage of time and with the introduction of newer markets having official influence but that also tends to take things the other way, posing adversity to the entire concept of crypto market, the decentralized environment.

Mohammad Shazil

A Riverside, CA born Electrical Engineer who bears the passion to write over every happening around. A crypto zealot. Shazil is the sub-editor of BlockPublisher news. Contact the editor at editor.news@blockpublisher.com

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