Upbit Crypto Exchange Traders to Face Fiat Services Disruptions over Lunar New Year Period

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Clients of South Korea’s Market Leading Crypto Exchange Upbit will be affected by a possible three-day outage during the Lunar New Year period, as your banking partner K-Bank moves its operations to a new headquarters.

South Korean banks, and companies throughout the East Asian region, will close their physical branches during the period, which begins Monday, January 31 and ends on February 2. Although K-Bank is a neobank and has no physical branches to speak of, officials likely decided that a move during this period would be the least disturbing, although cryptocurrency traders might agree. Crypto markets, unlike their conventional cousins, operate 24 hours a day, 7 days a week, 365 days a year.

The bank’s services will be offline from January 30 to the end of February 1.

According to Segye Ilbo, K-Bank will move its entire IT center from Seoul’s Sangam region to the other side of the city to a new location in Mokdong. K-Bank partners with Upbit and provides all fiduciary on / off ramp services. South Korean law stipulates that all fiat transactions of a crypto exchange will be conducted through authenticated real-name bank accounts provided by a single bank, which means that KRW withdrawals and deposits will likely be prohibited for three days. .

In a sense, it seems that Upbit has been a victim of its own success in this regard. K-Bank stated that a large influx of new customers had required the move. As Upbit has become the national market leader in the last 12 months, K-Bank has found it difficult to keep up with the demand for new accounts.

The bank has almost increased its number of users last year. At the end of 2020, K-Bank had fewer than 5 million account holders. By the end of 2021, it had just under 7.2 million customers.

Some media outlets have reported that Upbit may have grabbed 70-80% of the domestic crypto market, and its operator has already set its sights on expanding abroad into more competitive markets. Analysts have also proposed an initial public offering, although the firm has neither confirmed nor denied its intentions. Market professionals say the company is likely to float in New York, as it is too big for the national stock market.

At one point last year, the association sparked an “emergency” in the “management” of K-Bank’s “loan-deposit relationship,” with loans, mortgages, and other services performing considerably worse than crypto deposits and bank services. retirement.

K-Bank explained that it had made the decision to relocate its IT unit to “boost the level of its IT infrastructure,” the news outlet wrote, adding that its “number of clients has increased rapidly due to the recent launch of several new products and their association with Upbit. “

Neobank’s largest shareholder is the communications giant KT.
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