- Upbit placed HIFI on review after spotting risks linked to its project and changes.
- HIFI deposits are now paused and might not appear in accounts during this period.
- A court ruling let Upbit resume new sign-ups while its case with the FIU continues.
Upbit, the largest cryptocurrency exchange in South Korea, raised critical concerns about the transparency and business practices of the virtual asset HIFI. In a report, the exchange highlighted issues surrounding HIFI’s total issuance, circulation plan, and abrupt business model changes without sufficient justification. Upbit warned that the lack of clarity in these areas could pose risks to users and raised doubts about the sustainability of HIFI’s business practices and the rationality of its change procedures.
The exchange emphasized the importance of transparency in digital asset operations and pinpointed that the exchange is committed to ensuring that users do not undergo potential harm due to unsubstantiated or vague modifications. This level of caution implies developing regulatory scrutiny concerning cryptocurrency platforms, where strict adherence to established practices is needed.
Impact of the Trading Caution Designation
Upbit’s designation of HIFI as a trading caution item will impact its deposit services. From March 28 to April 11, 2025, no new deposits of HIFI will be accepted. If the issues surrounding the token are not resolved during this review period, Upbit may proceed to terminate its trading support for HIFI altogether. The exchange confirmed that users who attempt to deposit HIFI after the suspension may face delays or potential non-reflection of deposits in their accounts.
Despite the temporary suspension, Upbit will continue to assess the situation closely. If additional maintenance or unscheduled updates occur, the platform will notify users promptly. This decision aligns with Upbit’s policy on terminating support for digital assets that fail to meet regulatory standards.
Related: Whales Move Millions in Crypto to Exchanges in 24 Hours
Upbit Faces Legal Challenges Amid Regulatory Issues
In another development, a South Korean court temporarily overturned a ban imposed on Upbit by the Financial Intelligence Unit. The FIU had restricted the exchange from accepting new customers for three months.
However, the court’s decision has allowed the company to continue with its operations of serving new clients while the legal dispute is still in court. The ruling brings temporary respite for the platform, which is presently winding its way through South Korea’s diverse regulatory climate around cryptocurrency exchanges.
These events highlight the growing scrutiny and corresponding steps in regulations that digital asset exchanges have to endure globally. For the moment, Upbit has been diligent in dealing with user and regulatory concerns while ensuring alignment with local laws.
