Regulation
Upbit Strengthens Implementation of Domestic Crypto Trading Ahead Protection Act
Digital asset exchange Upbit has released a financial transparency report to provide fair and trustworthy cryptocurrency services. This is in line with the Virtual Asset User Protection Act (VAUPA) that will be implemented on July 19. South Korea and other global regulators continue to increase their efforts to regulate cryptocurrencies.
Upbit tightens cryptocurrency rules
Upbit has tightened cryptocurrency trading rules for certain scenarios through Dunamuthe exchange operator. In a recent statement, the company announced its transparency report for the first time. According to the statement, self-regulation would be applied to prevent the use of undisclosed information.
In line with the article of the Specific Finance Information Act, employees and executives of the exchange are prohibited from trading virtual assets through the service. In addition, Upbit limits cryptocurrency trading to immediate family members or close relatives of employees to maintain fair and balanced trading services. An overview of the report shows directives to prevent insider trading, promote fair trading, assess risk through Know Your Customer (Quality check) Regulations, prevention of price manipulation, etc.
“The report also includes Dunamu’s efforts to prohibit price manipulation within Upbit. A representative example is the ‘Upbit Market Oversight (UMO)’ system.UMO was created to meet the market surveillance obligations of virtual asset exchanges, which are strengthened by the enforcement of the User Protection Act.”
Upbit said that the transparency report will be published annually to maintain policies. Lee Seok Woo Dunamu CEO noted that user safety and market stability are the top priorities for the exchange, and outlined steps to achieve them.
South Korea tightens rules
This announcement comes on the heels of the implementation of VAUPA on July 19. The rules require cryptocurrency exchanges to create monitoring systems to prevent fraudulent transactions and price manipulation in South Korea. VAUPA was passed into law last year, setting a new standard to promote fair trading standards among digital asset exchanges. Like Upbit, other cryptocurrency firms in South Korea have also begun implementing VAUPA. This is in line with global regulatory efforts to curb digital asset fraud in the financial market.
Read also: USDT, USDC, in danger as BIS will only allow permissioned stablecoins
David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.