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South Korea’s FSC will reportedly investigate Upbit’s relationship with its bank partner K-Bank amid the latter’s IPO, which is expected in late October.
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Major South Korean cryptocurrency exchange Upbit reportedly faces a monopoly investigation from local financial regulators.
South Korea’s Financial Services Commission (FSC) plans to investigate Upbit exchange for potential anti-monopoly breaches, the local news agency Infomax reported on Oct. 9.
During an audit by the South Korean parliament, the National Assembly, lawmaker Lee Kang-il reportedly expressed concerns about Upbit’s market monopoly and its relationship with online bank K-Bank.
He specifically raised the issue of Upbit’s deposits taking up a significant portion of K-Bank’s deposits, posing a potential bank run risk.
FSC Chairman Kim Byung-hwan said that he was aware of Upbit’s monopoly issue and that the FSC would investigate Upbit’s monopoly structure in response to Lee’s concerns.
“We implemented the Electronic Financial Transaction Act on Sept. 15, and we will check the situation after the system is implemented,” Kim stated.
K-Bank, a major banker of Upbit since at least 2021, filed for an initial public offering in Seoul in September that may raise as much as $732 million. This could potentially make it the biggest South Korean listing in almost three years.
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
