South Korea’s top financial regulator, the Financial Services Commission (FSC), is set to investigate the cryptocurrency exchange Upbit for potential monopolistic practices. The investigation will also examine its relationship with K-Bank, as the latter prepares for its upcoming initial public offering (IPO) scheduled for late October.
FSC Targets Upbit’s Market Influence
Local media outlet Infomax reported on October 9 that the FSC’s probe into Upbit comes amid concerns of anti-competitive behavior. These concerns were highlighted during a recent audit by South Korea’s National Assembly. Lawmaker Lee Kang-il specifically pointed to Upbit’s dominant market position and its significant ties with online bank K-Bank.
Lee emphasized that Upbit’s deposits account for a large portion of K-Bank’s total deposits, raising fears of a potential bank run. This risk prompted regulators to take a closer look at Upbit’s influence over K-Bank’s operations and overall market stability.
FSC Responds to Concerns About Market Monopoly
FSC Chairman Kim Byung-hwan confirmed that the agency is aware of the monopoly concerns surrounding Upbit. In response to these concerns, the FSC plans to evaluate the platform’s market structure and its impact. “We implemented the Electronic Financial Transaction Act on September 15, and we will assess the situation under the new system,” Kim stated.
K-Bank’s IPO and Its Link to Upbit
K-Bank, which has been a primary banking partner for Upbit since at least 2021, is set to go public in Seoul. The IPO could raise up to $732 million, potentially making it South Korea’s largest listing in nearly three years. This close relationship between K-Bank and Upbit has led regulators to closely monitor the bank’s financial health and market exposure.
