A cryptocurrency exchange by the name of Youbit has just re-emerged on the forefront. This exchange has gone through many controversies. It has been a victim of hacking. This digital currency exchanged has filed for bankruptcy also. It has also been under the spotlight due to its insurance policy claim.
If you are thinking that you have seen the last of Youbit, then you are mistaken. This exchange operates under a new name after it got sold out. DB Insurance which is currently one of the major insurer’s in South Korea has openly denied the insurance claim of Youbit. This insurance claim was worth 3 billion won.
The claim was initiated by Yapian that is the Youbit Operator. The claim was denied because Youbit failed to follow the rules. DB insurance required the exchange to reveal some important information for getting the insurance.
Way back in December last year this exchange suffered a loss of about 17.2 billion won. This is when the exchange filed for bankruptcy because it also lost about 17% of its assets. Now, this turned out to be a red alert for the digital currency regulators in South-Korea as well.
They felt that they need to expedite the process of digital currency regulation. All this happened due to the controversy of Youbit. The insurance claim of Youbit was quite suspicious and there were many unaddressed loopholes that could not be ignored by any means at all.
This exchange acquired the DB policy just 20 day before it declaring itself bankrupt. Now, in March Yapian decided to sell Youbit to another exchange. This exchange operates by the name of Coinbin at the moment.
This is an alarming moment for the South-Korean digital currency users also and they need to be vigilant against such exchanges. If an exchanges has a shady past, it does pose a risk to the users and their investments are not secure for sure.
Ideally, the regulators should also ensure that they do not allow a controversial exchange to operate under a new name. What the regulators should do is that they should review the working procedures of all the current exchanges in South-Korea so that such an incident can be avoided in the near future.
This way the digital currency investors can be saved from trouble coming their way and the exchanges will also act more responsible while managing their operation in the future.