South Korean media outlets have suggested the nation’s crypto exchanges are beginning to “self-regulate” as pressure mounts from the government – with the Upbit trading platform capping crypto deposits to a daily maximum of just under USD 450,000.
Per Donga Ilbo, one of the country’s biggest newspapers, the new daily deposits cap is a “sign that the industry may be starting to self-regulate.” One-off deposits will be capped, too, at a maximum of around USD 90,000.
The measures came into force on Monday, and mark the first time Upbit has ever placed deposit limits on its real-name- and social security number-authenticated clients.
The government and financial regulators have spoken – mainly in relatively vague terms – about the need to regulate what they have both labeled an “overheated” market. Financial regulators have spoken about creating ways to limit access to crypto for younger investors and possibly looking to reduce the operating hours of certain trading platforms.
And although Seoul is now facing a backlash from many younger crypto advocates, with evidence of some backtracking, it looks like market-leading exchanges would rather pre-empt regulators by imposing their own measures – possibly in an effort to convince Seoul to stay its hand.
The ruling Democratic Party suggested recently that rather than embark on another round of regulations, it could be prepared to leave such matters “to the markets.” Opposition lawmakers have taken the government to task for what it dubbed a “betrayal” of younger citizens.
However, the scale of the backlash continued to intensify today, with a number of petitions demanding the resignation of the Financial Services Commission following comments calling for further regulations – and insisting that “elders” had a duty to keep younger citizens “on the right path.”
The most popular of the petitions, hosted on the office of the President, has now gained over 140,000 signatures. Two other petitions in the same vein have attracted the collective support of over 100,000 signatories.