Report Date: October 15, 2025 Source: AIXBT MCP Top Projects
Upbit delisted XMR/ZEC; $PROVE remains as the sole compliant ZK token for Korean investors.
Upbit is South Korea's largest cryptocurrency exchange by trading volume, founded in 2017 and backed by strong corporate support. The platform has established itself as a dominant force in the Korean crypto market, though it operates with a more conservative approach compared to global competitors, focusing primarily on spot trading without margin or futures products.
Upbit has been actively expanding its ecosystem in 2025, introducing several technological upgrades including Layer-2 solutions, cross-chain bridges, and AI-driven risk management systems. The exchange's 2025 roadmap emphasizes reducing transaction times, expanding cross-chain interoperability, and strengthening compliance measures. Recent listings in 2025 include tokens like ETHFI, RESOLV, INIT, and SPK, reflecting the platform's strategic push to diversify its offerings within the growing DeFi sector, which reached approximately $123.6 billion in total value locked by mid-2025.
The Korean Financial Services Commission (FSS) has proposed new guidelines requiring real-time chain-on-chain audits, and Upbit has begun implementing infrastructure to meet these standards.
Upbit has maintained a stringent approach to regulatory compliance, which has resulted in several high-profile delistings. In September 2019, the exchange delisted multiple privacy-oriented cryptocurrencies including Monero (XMR), ZCash (ZEC), Dash (DASH), PIVX, Haven (XHV), and BitTube (TUBE) to prevent money laundering and comply with anti-money laundering regulations. This decision followed the Financial Action Task Force (FATF) guidelines requiring virtual asset service providers to carefully monitor transactions and obtain KYC information from users.
More recently, in October 2025, Upbit designated Boundless (ZKC) as an "investment warning" currency and suspended its deposit service. The exchange identified significant deficiencies in ZKC's planned circulation volume changes, transparency, and information disclosure, with the warning period extending until October 17th. This action demonstrates Upbit's continued vigilance regarding token quality and compliance.
Regarding the claim about $PROVE being the sole compliant ZK token for Korean investors, the search results do not contain any information about this token or its compliance status on Upbit. The only ZK-related token mentioned is ZKC, which received an investment warning rather than approval.
As South Korea's leading exchange, Upbit wields considerable market influence—listings or delistings on the platform significantly impact price movements. The exchange supports trading of over 200 cryptocurrencies with various fiat pairs, though notably absent are popular tokens like Solana, Avalanche, and memecoins.
Trading Features: - Fee structure: 0.25% for fiat markets, 0.2% for crypto markets - Order types: Market orders, limit orders, and stop-limit orders (not available in all markets) - Leverage: Limited to 1x (no margin trading) - Additional services: Staking programs
The platform operates with four KYC verification levels, each unlocking different features and withdrawal limits. This tiered approach allows Upbit to maintain regulatory compliance while serving different user segments.
Upbit employs cold storage for the majority of assets, two-factor authentication, fund password protection, and 24/7 monitoring. However, the platform experienced a significant security incident in 2019 when 342,000 Ether was stolen from its hot wallet. The exchange compensated affected users and transferred all remaining assets to cold storage following the breach.
The exchange has maintained a clean record since then, with no subsequent fraud or scam incidents reported. The 24/7 customer support is available through phone, live chat, and lounge services.
Upbit's competitive advantages include strong corporate backing, a high-quality platform, and robust security measures. The exchange is also rumored to be involved in acquisition discussions with major Korean tech companies, suggesting potential for significant expansion.
However, the platform has notable limitations compared to global competitors: - No margin or futures trading capabilities - Limited product diversity (no earning products, copy trading, crypto cards, or loans) - Geographic focus primarily on Asian clients - Restricted access for users from certain jurisdictions including the US, Iran, Cuba, Sudan, North Korea, and Syria
Regulatory Risks: Upbit has faced regulatory headwinds, including senior employees being charged with fraud in 2018 (though they were later found not guilty). The exchange has also received business suspension notices from South Korean regulators over AML violations, indicating ongoing regulatory scrutiny.
Operational Risks: The platform's conservative approach and focus on compliance sometimes results in limited token selection compared to global exchanges. The listing procedure, published in 2022 under government pressure following the Terra collapse, examines transparency, transaction support, and fair investor participation.
Market Concentration: As the dominant Korean exchange, Upbit's decisions can create significant market volatility. A senior executive acknowledged that "cryptocurrencies are no different from the products that go on the shelves at groceries or department stores," emphasizing the exchange's role as a gatekeeper.
For Korean investors specifically, Upbit represents the primary gateway to cryptocurrency markets with the highest liquidity and strongest regulatory compliance in the region. The platform's conservative listing approach and frequent delistings of non-compliant tokens mean that tokens available on Upbit generally carry an implicit stamp of regulatory acceptance within the Korean market.
However, investors should note that Upbit's limited product offerings make it unsuitable as a sole platform for sophisticated trading strategies. The absence of margin trading and advanced derivatives means active traders often need to use multiple exchanges. Additionally, the platform's focus on compliance means it may delist tokens more aggressively than global competitors, potentially impacting portfolio strategies.
The exchange's proactive stance on meeting evolving regulatory requirements positions it well for long-term sustainability in an increasingly regulated environment, though this may come at the cost of slower innovation compared to less regulated competitors.
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