Key Data

• Trading Name: UPbit
• Legal Entity: Dunamu Inc.
  Upbit Singapore Pte. Ltd.
• Activities: Crypto Exchange
• Location: Seoul, South Korea
• Regulations: regulated by MAS Singapore
• Key People: Song Chi-Hyung

Upbit is a crypto exchange founded in South Korea, licensed by Thailand SEC, and registered in several other Asian countries. Upbit is considered the largest cryptocurrency exchange by volume in the South Asian crypto markets.

Upbit was founded in 2017 by Song Chi-Hyung and was also built with the help of its partnership with American crypto exchange Bittrex.

Offering

The exchange offers a fiat-to-crypto and crypto-to-crypto trading platform with limit order, market order, and stop-limit order types. It covers over 200 digital assets, trading pairs, and marketplaces in Korean and English.

Compliance Problems

Upbit suffered a significant setback when its headquarters were raided on May 10, 2018, as part of a fraud investigation. This investigation resulted in the indictment or formal conviction of three Upbit executives on December 21, 2018, who were accused of participating in the creation of fake orders. Despite these charges, Upbit strongly denies any wrongdoing.

In addition to the fraud allegations, Upbit experienced a notable security breach in 2019, with 11 attacks resulting in the theft of $283 million in cryptocurrency. While the parent company took the commendable step of refunding the stolen funds to affected customers, the occurrence of such a large breach raises significant concerns about the platform’s security protocols.

More recently, a report from Yonhap revealed that Upbit faced a staggering 159,000 hacker attacks in the first half of 2023 alone. This represents a significant 117% increase from the previous year, and an alarming 1800% increase from the first half of 2022. While it is acknowledged that security measures have been strengthened since the major attack in 2019, the continued targeting of Upbit by hackers underscores the vulnerabilities that continue to pose a threat. Currently, 70% of the exchange’s funds are stored in cold wallets as a security measure; however, the frequency and intensity of cyberattacks raise questions about the effectiveness of these measures in protecting user assets.

Regulation

Upbit Singapore has secured preliminary approval from the Monetary Authority of Singapore (MAS) for a significant payment institution license, in accordance with the Payment Services Act. This Act serves as the regulatory framework governing cryptocurrency activities in the country. The approval enables Upbit Singapore to continue providing regulated Digital Payment Token services in compliance with the Payment Services Act 2019 while awaiting the grant of the full license.

Customer review

Trustpilot: 3 Stars with 8 Reviews

People

• Song Chi-Hyung (Founder)

Conclusion

Upbit has been assigned a “RED” rating in compliance checks due to a history of controversies and security issues. In 2018, the company’s headquarters were raided as part of a fraud investigation, resulting in charges against three executives. Although Upbit denies involvement, concerns persist. The platform experienced a significant security breach in 2019, with $283 million in cryptocurrencies stolen, though the parent company refunded customers. Recent reports indicate a surge in hacker attacks, with 159,000 in the first half of 2023 alone—a 117% increase from the previous year. Despite increased security measures, the ongoing vulnerabilities and risks associated with Upbit contribute to its “RED” rating.