South Korean Crypto Exchange UPBit Passes Audit, Proves Solvency

South Korean Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term UPbit has passed its audit, showing full solvency. A report from the Yoojin Accounting Corporation shows that UPbit’s reserves ratio stands at 103 percent and cash ratio stands at 127 percent.

UPbit originally requested the audit after local authorities raided the company and seized its servers in May. Cryptovest reported that the exchange was raided several times due to suspicions about price manipulation, a fraudulent balance sheet, and insolvency.

"We Are Able to Pay Whenever Our Customers Wish to [Withdraw]"

“Since early 2018, UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting firm, a major accounting firm based in Seoul, confirmed that all of the funds on the UPbit platform match the cryptocurrency holdings of UPbit stored in its multi-signature wallets,” said a local news source.

In the statement announcing the success of the audit, Lee Seok-woo, CEO of Dunamu, which owns UPbit, said that “we hold excess amounts of cryptocurrency and cash reserves than what we have to pay our customers. This indicates we are able to pay whenever our customers wish to [withdraw.]”

The South Korean government has yet to comment on the audit.

South Korean Exchanges Under Pressure as Hacks Continue Around the World

The successful audit is a breath of fresh air for the South Korean crypto exchange industry, which has endured some rough spots since late 2017. The now-defunct exchange Youbit filed for bankruptcy following a hack that resulted in a 17 percent loss of user funds in December.

Additionally, Bithumb was hacked for $30 million in June, and halted the acceptance of new clients soon after, citing banking issues. The exchange began publishing audits of its own in April.

1.Bithumb, given its revenue size, is now required to publish audited accounts. Highlights as of 31/12/2017 YE: (a) it held circa. $6bil USD Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term on behalf of its customers. (b) held circa. $0.4bil USD crypto. in its own balance sheet. Reported from: @coindeskkorea 3. https://t.co/w6YQKUTyBh

— Crypto Korean ??한국 (@CryptoKorean) April 16, 2018

Earlier this year, in April, executives from Coinnest were questioned in connection with allegations that the exchange was stealing its own users’ funds.