South Korea’s largest crypto exchange Upbit, issued a formal investment warning for the HIFI token.
The warning explains that HIFI has been classified as a trading stock for regulatory purposes, and deposit services will soon be suspended.
Upbit confirmed that unsound practices and arbitrary changes in key project details led to the designation. The exchange determined that the HIFI token failed to meet basic standards for transparency and investor protection.
The notice clearly states that the suspension of deposit services will begin soon and warns users against further deposits. Upbit also advised members to review their digital asset holdings carefully during this period.
The warning details that the deposit suspension applies to HIFI/KRW and HIFI/BTC trading pairs. Upbit noted that changes in the token’s total issuance and business plans were not properly disclosed.
Upbit Flags HIFI as Trading Risk
The exchange highlighted that the token’s distribution plan was altered without clear and rational explanations. The review process may extend the period of deposit suspension if the issues are not fully resolved.
The notice clearly explains that deposits made during the suspension period may not be credited to user accounts. Upbit stressed that any deposits during this period might be delayed or lost permanently.
The company promised to update its users with further instructions and detailed schedules soon.
Also Read: South Korea’s FSC Launches Probe Into Upbit’s Market Monopoly
HIFI’s Price Actions
At the time of writing, the HIFI token price has declined by more than 12.16%. The token currently trades at approximately $0.2956 in global markets. The global market capitalization of HIFI stands at around $41.82 million at present.
Meanwhile, the token experienced a dramatic surge in the 24-hour trading volume, which increased by over 1012%. These market movements indicate strong investor reactions amid regulatory warnings.
Many traders have expressed concerns regarding the suspension of deposit services and potential further losses. The high trading volume reflects heightened interest in HIFI despite the regulatory caution issued by Upbit.
The sudden volatility in HIFI’s market price has unsettled many investors who depend on stable trading conditions. Market participants are watching the situation closely and waiting for more clear guidance from the exchange.
Regulatory Actions and Sanctions
In a separate development, South Korea’s Financial Intelligence Unit issued a preliminary sanction notice to Upbit. The notice cited multiple violations of the Specific Financial Transaction Information Act by the exchange.
Authorities allege that over 700,000 instances of customer identity verification were mishandled by Upbit. The FIU also noted unauthorized transactions with unregistered foreign virtual asset operators.
These actions raise serious concerns about compliance with legal and regulatory standards. The notice underscores the need for strict adherence to policies that protect investor data and financial transactions.
The financial regulator aims to ensure that exchanges implement proper practices for customer security.
Upbit is now under intense regulatory scrutiny as authorities review its operations. The sanction notice adds pressure on the exchange to tighten its internal controls and review its procedures.
Upbit’s warning on the HIFI token and the related regulatory notice highlight the critical need for enhanced transparency in crypto trading
Also Read: Upbit’s 3-Month Partial Business Suspension Sanctions Put on Hold Pending Further Review