Upbit, one of the leading global cryptocurrency exchanges, has temporarily suspended deposit and withdrawal services for NEAR Protocol (NEAR) due to an upcoming network upgrade.
This suspension, scheduled to begin on August 26, 2024, is a precautionary measure to ensure the safety and security of users’ assets during the upgrade process.
While NEAR trading on the platform will continue uninterrupted, Upbit has advised users to avoid making any NEAR deposits during this period, as recovery may not be possible if issues arise.
NEAR Transactions Suspension and Network Upgrade
Upbit recently announced that it will temporarily halt NEAR Protocol deposits and withdrawals due to a scheduled network upgrade that aims to improve the blockchain’s performance and security.
The suspension will begin at 12:00 KST on August 26, 2024, and will remain in place until Upbit confirms the stability of the upgraded network.
The exchange has issued a clear warning to its users: any NEAR deposits made after the suspension begins may not be reflected in their Upbit accounts, and in some cases, recovery of these funds may not be possible.
Additionally, during the suspension, deposit and withdrawal processing will be paused, and any backlog created during this period will be addressed sequentially once services resume.
Despite the suspension of deposits and withdrawals, NEAR trading on Upbit will not be affected.
The exchange reassures users that trading activities will continue as usual, allowing traders to buy, sell, or exchange NEAR tokens without interruption.
Upbit also emphasizes that it will work closely with the Near Protocol team to ensure the secure protection of user assets throughout the upgrade process.
Upbit Regulatory Strom Amid Growth
This temporary suspension comes as Upbit, along with other South Korean cryptocurrency exchanges, is under close scrutiny by the Financial Supervisory Service (FSS) as part of the enforcement of the Virtual Asset User Protection Act (VAUPA).
Since the law came into effect on July 19, 2024, the FSS has implemented a continuous monitoring system to detect and address suspicious transactions across registered crypto exchanges, including Upbit.
Upbit’s adherence to this regulatory framework is critical, as it operates in a highly regulated environment where the protection of user assets is a top priority.
In a related development, a South Korean court has recently ordered Dumamu, the operator of the crypto exchange Upbit, to compensate a Vietnamese investor approximately $107,000 for delaying the transfer of Terra LUNA Classic (LUNC) coins just before the Terra ecosystem crash in May 2022.
The investor attempted to transfer 1,310 LUNC from his Upbit wallet to Binance, but due to an error in entering the wallet address details, the coins ended up in Upbit’s wallet.
Despite the investor’s repeated requests for the return of his coins, Upbit cited anti-money laundering protocols as the reason for the delay, ultimately leading to the coins’ value plummeting by 99.9% during the crash.
The court ruled in favor of the investor, stating that Upbit should have been better prepared for such cases.
The court also ordered Dumamu to pay late payment interest, emphasizing that the delay in returning the coins was unjustifiable.
In another recent report, South Korean lawmaker Min Byeong-deok raised concerns that the crypto exchange Upbit is becoming a “monopoly,” dominating around 60% of the country’s trading volumes as of July.
Although this figure decreased by over 80% in October of the previous year, Min and others are still worried about Upbit’s substantial influence, particularly when combined with the market dominance of its banking partner, K Bank.
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