The crypto sector has been seen as one of the best investments in the financial industry, judging by the performance of digital assets. Despite that, one thing that has dragged the industry back is the rate at which illegal activities are carried out in the crypto industry.
With that aside, fraudsters and malicious actors have riddled the crypto market, making the space unsafe for crypto investors and traders. This is yet again the latest development as Upbit, a crypto exchange based in South Korea, has announced a limited suspension to its withdrawal activities to protect its users from malicious actors on the platform.
Limited withdrawal to begin on November 28
According to South Korea based crypto exchange, the limited suspension of the platform’s withdrawal activities is expected to begin on November 28. Furthermore, the crypto exchange noted that restriction would see members withdraw amounts equal to their deposited amount in the last 24 hours. The exchange also mentioned that the limited suspension to withdrawals would only apply to users who exchange their deposited cash for digital assets.
The crypto exchange went further to say that users can deposit and withdraw funds on the platform as much as possible, provided they follow the new guidelines. In the same vein, users will be allowed to deposit or withdraw cash and digital assets at different times of the day.
” Members will not be permitted to withdraw, provided the amount that they want to withdraw is more than the amount deposited in the last 24 hours. A typical example is if a particular user deposits one million won and intends to withdraw the funds before 24 hours, he will not be able to withdraw it. However, the crypto exchange mentioned that it is only after 24 hours that the user will withdraw the funds.
Upbit wants to tackle illegal activities on its platform
According to the crypto exchange, the new rule was drawn up to tackle financial frauds carried out on the crypto exchange’s platform. The renowned crypto exchange, Bithumb, said that it had noticed that crypto users on different exchanges across the globe are now victims of voice phishing.
In their statement, the crypto exchange said that malicious actors try to call users on their respective platforms to coerce them into releasing vital and essential information that would help them steal from the users’ accounts.
In this regard, Upbit wants to use the delay in withdrawals so that users can notify them of illicit withdrawals after they are made. With this move, the activities of fraudsters will be reduced on the platform. “We aim to create a very secure digital trading environment by studying different patterns of frauds related to crypto-assets. This will give us more opportunities to prevent them from happening in the future,” the crypto asset said.