Upbit the South-Korean exchange is under investigation

South-Korea has been putting a lot of efforts to bring about transparency in the way the digital currency exchanges operate and is leaving no stone unturned in this regard. All the digital currency exchanges that appear to be having a shady operation are under investigation. One such exchange is Upbit.

The interesting part is that Upbit is one of the largest exchanges in South-Korea. However, it has not been able to satisfy the authorities regarding its operations. The authorities are quite keen to investigate the operation of this exchange. This can be considered a positive step on the part of the authorities because they want to offer a clean and transparent trading environment for the digital currency sector.

At the moment the investigation is under process and the authorities are trying to dig down the truth. The final investigation results will decide the faith of Upbit. At the moment the authorities have taken the Upbit computers into their custody. The reason behind this is that the authorities want the truth to be out soon.

The main issue at the moment is the liquidity of some of the coins. What is questionable here is that Upbit does allow the trading of digital currencies despite the fact that it does not have the actual coins in its custody. This is something alarming and concerning for the authorities.

Another issue that is currently being faced by Upbit is that if a user wants to transfer or withdraw his coins in one go, then this operation cannot take place right away. The authorities feel that the users should have immediate access to their coins upon request.

On the other hand, Upbit is trying to come up with explanations so that it can win back the trust of the authorities. Upbit wants to present the picture that the entire case is more of a misunderstanding and they are trying their utmost to secure the digital currencies. Upbit also wants to clarify that there is some ambiguity in understanding its trading procedure. This is one of the reasons that the authorities are not satisfied with the operation of Upbit.

The important thing is that the truth needs to come into the limelight otherwise it will become very difficult for the users to invest their trust in this exchange and it may not have a bright future ahead. The final conclusion can be drawn once the authorities present their final report regarding this exchange.

2018-05-19T10:03:06+00:00