Upbit Extends Crypto Trading Ban to Family Members of Staff

Upbit Extends Crypto Trading Ban to Family Members of Staff
  • Dunamu felt it had a responsibility to its community, therefore it decided the restriction.
  • Only the top 12 cryptocurrencies, as measured by market cap, may be traded.

Dunamu, the South Korean business that operates the Upbit exchange, has reportedly banned the trade of cryptocurrencies by the immediate family members of its executives and workers since August, according to sources. Dunamu felt it had a responsibility to its community, therefore it decided to expand the restriction to include the dependents of its executives and workers.

South Korean media stated on Tuesday that the move is an attempt to encourage moral leadership in the crypto sector. The government updated the legislation in September 2021 to prohibit cryptocurrency trading by crypto firms and their employees.

Stringent Trading Restrictions 

Increasing openness and preventing customers from being affected by price manipulation by crypto firms were the motivations for this change. Dunamu has taken things further by largely prohibiting its employees from trading on any other exchanges save its own. Only the top 12 cryptocurrencies, as measured by market cap, may be traded.

They can only buy limited coins every year, and that amount is capped at 100 million won (about $75,000). In addition, every quarter they must report their trading activities to the appropriate authorities.

If the rule is broken, the violator might face a fine of 100 million won or perhaps have their firm shut down. South Korea’s financial regulator issued a similar warning last month, urging domestic firms considering forays into the cryptocurrency sector to proceed with care.

Now that Upbit from Dunamu has set the bar, it’s reasonable to wonder whether other Korean exchanges would follow suit and forbid employees and their families from engaging in cryptocurrency trading.

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A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.