Upbit

South Korea's cryptocurrency market has seen remarkable growth in recent years, with Upbit emerging as one of the country's largest exchanges. Established in 2017 by Dunamu, one of South Korea's highest-valued startups, Upbit has carved out a significant presence in the global crypto trading landscape. Let's explore what makes this exchange tick, its recent challenges, and why millions of traders continue to use it despite some regulatory bumps along the road.

The Upbit Exchange: A Brief Overview

Upbit operates as a centralized cryptocurrency exchange serving users across 40 countries, though notably excluding the United States. The platform offers spot trading in various markets including Korean Won (KRW), Singapore Dollar (SGD), Bitcoin (BTC), and Tether (USDT), making it versatile for different types of traders. According to BitDegree, Upbit has established itself as a major player in the cryptocurrency space, particularly dominating the South Korean market.

With more than 8 million users worldwide, Upbit's popularity stems partly from its user-friendly interface and robust security measures. It was the first exchange to obtain Information Security Management System (ISMS) certification, a fact highlighted by many experienced users who prioritize security when choosing trading platforms.

Trading Features and Fees

Upbit's trading environment is quite comprehensive, supporting over 280 trading pairs across its various markets. The exchange implements a maker-taker fee model with standard fees of 0.25%, though these can be reduced to 0.2% for BTC and USDT markets during promotional periods, as noted by BitDegree.

For traders concerned about minimum requirements, order sizes vary by market:

• 0.5 SGD for fiat markets
• 0.0005 BTC for Bitcoin markets
• 0.0005 USDT for Tether markets

One interesting feature that advanced traders appreciate is Upbit's margin trading capabilities. The platform offers sophisticated tools including stop-loss and take-profit orders, which help users manage risk more effectively. The real-time market updates and detailed trading charts are also frequently mentioned as advantages by experienced traders.

Security Measures and Past Incidents

When it comes to crypto exchanges, security history matters. In 2019, Upbit experienced a significant security breach when North Korean hacking groups Lazarus and Andariel stole 342,000 ETH. At the time, this amounted to approximately $50 million, though today those same tokens would be worth over $1 billion. According to Cointelegraph, South Korean authorities confirmed the hack, which saw stolen funds laundered through 51 overseas exchanges, with 57% sold on North Korean-operated platforms.

To the exchange's credit, Upbit fully reimbursed all affected users, covering the stolen Ethereum assets in full as reported by Cryptowisser. Since then, the exchange has implemented enhanced security measures, including BitGo's multi-signature wallets for cold storage security, as mentioned by Business24-7.

Security-conscious users often note that while the platform itself offers robust protection, they still recommend using third-party wallets like MetaMask, Trust Wallet, or hardware solutions like Ledger for additional security layers.

Regulatory Challenges in 2025

The start of 2025 brought significant regulatory challenges for Upbit. In January, the exchange faced potential sanctions from South Korea's Financial Services Commission for inadequate KYC/AML compliance issues. According to multiple sources including OpenExo and CoinDesk, these concerns threatened a six-month withdrawal ban for new users.

By March 2025, South Korean regulators imposed a three-month partial suspension, restricting new user cryptocurrency transactions due to unregistered business dealings, as reported by Tron Weekly. While existing users retained full trading capabilities during these sanctions, new users faced deposit and withdrawal freezes.

I think it's worth noting that these kinds of regulatory growing pains are pretty common in the crypto space. Remember when Binance was getting smacked with restrictions left and right? Same story, different exchange.

KYC Requirements and Regional Variations

Upbit maintains strict KYC verification requirements that vary by region. In South Korea, there are five verification levels, while Thailand and Singapore have four, and Indonesia has three, according to CoinCodeCap.

An interesting regulatory development affecting Upbit is South Korea's "travel rule," which mandates identical KYC details (email, phone) for cross-exchange transfers exceeding 1 million KRW. This requirement, detailed by Zoomex, represents South Korea's efforts to align with FATF guidelines on cryptocurrency transfers.

User Experience and Platform Features

Despite regulatory challenges, Upbit continues to attract users with its user-friendly platform. The exchange offers mobile apps for both iOS and Android that mirror desktop functionality while supporting two-factor authentication.

A particularly popular feature is the Lightning transfer system between Upbit accounts. These transfers are instant and free, bypassing blockchain networks entirely, as highlighted by both BitDegree and CoinCodeCap.

When it comes to deposits and withdrawals, Upbit accepts bank transfers for fiat deposits without charging fees, though network fees apply to crypto transactions. Bitcoin withdrawals specifically incur a 0.0009 BTC fee, with fees varying for other assets.

Market Position and Trading Volume

As of 2025, Upbit's 24-hour spot trading volume exceeds $1.7 billion, placing it among the top 15 exchanges globally according to TokenInsight. The exchange continues to expand its offerings, recently adding 12 new tokens, though with certain trading restrictions to prevent market manipulation.

These restrictions include 5-minute buying limitations and a 10% price restriction from the previous day's closing price for new listings. While these measures help maintain market stability, some traders find them limiting during volatile periods.

Final Thoughts

Upbit represents an interesting case study in the evolving cryptocurrency exchange landscape. Despite some regulatory bumps and a major security incident in its past, the exchange has maintained user trust through transparent handling of issues and continued platform improvements.

However, potential users should note that Upbit does prohibit US-based customers from using its services, and verification requirements can be quite stringent depending on your region. As with any crypto platform, doing your own research and considering your specific needs remains essential before committing to any exchange.

If you're comfortable with the KYC requirements and don't mind navigating the occasional regulatory hurdle (which, let's be honest, is practically the crypto national sport at this point), Upbit offers a solid trading experience backed by significant trading volume and market diversity.