Upbit to Suspend Near Transactions Ahead of Network Upgrade

Upbit, a cryptocurrency exchange based in South Korea, has temporarily suspended deposits and withdrawals for NEAR Protocol in preparation for an upcoming network upgrade. This measure is intended to facilitate a smooth upgrade execution for NEAR, which supports Web3 applications and offers scalability.

NEAR Protocol boasts itself as a community-driven cloud computing platform that addresses common blockchain challenges like slow transaction speeds, inefficiency, and poor connectivity. It offers an ideal developer environment and a user-friendly platform that simplifies interactions. For instance, NEAR employs easy-to-read account names, unlike the cryptographic wallet addresses typically used by other blockchains.

The Network Upgrade

Upbit plans to suspend NEAR-related services starting August 26 at 3:00 AM UTC. The suspension will continue until the network upgrade is confirmed to be stable. Once stability is achieved, Upbit will announce when the services will resume.

Notably, Upbit’s temporary halt involving the NEAR protocol is a prudent step to ensure a seamless transition during the network upgrade. In the crypto industry, it is a common practice to pause transactions during significant updates to prevent potential issues.

Upbit users are urged to keep in touch with the official notice from the exchange notifying the resumption of NEAR protocol operations.

Enhancing User Protection in the Crypto Sector

Network upgrades are crucial in maintaining a network’s security and efficiency. They require meticulous planning, stakeholder engagement, and the implementation of robust automation processes. When crypto projects perform routine network upgrades, they upscale their network infrastructure and security measures, benefiting platform facets like firewalls, intrusion detection and prevention systems, and encryption. By extension, these maintenance actions benefit users by securing their funds.

The South Korean government is actively working to enhance user protection in the crypto industry through legislative measures like the Virtual Asset User Protection Act (VAUPA), which took effect on July 19. This act aims to bolster security and oversight in the industry. As part of this initiative, South Korea’s Financial Supervisory Service (FSS), a government agency responsible for regulating financial institutions, has implemented continuous monitoring of suspicious transactions. 

As of June 16, several exchanges, including Upbit, have registered with the FSS under the VAUPA. According to a notice on July 4, these registered exchanges have established systems to detect and filter unusual activities.