The crypto industry in South Korea is facing some serious allegations as Chinese crypto news blogger Collin Wu disclosed that several crypto projects had to pay hefty sums to get their tokens listed on the top crypto exchanges in the country. According to Wu, some projects paid up to 5% of their total token amount to intermediaries to secure listings on exchanges like Upbit and Bithumb.
Out of the 7 crypto projects Wu reached out to, 4 admitted to paying fees ranging from $2 million to $10 million to the intermediaries of Upbit and Bithumb. These intermediaries were reportedly shareholders and market makers associated with the exchanges. However, 3 of the projects denied paying any fees for their listings, raising questions about the transparency and integrity of the listing process on these exchanges.
While Upbit and Bithumb have not responded to these allegations publicly, it is crucial for regulatory authorities to investigate these claims and ensure fair practices in the crypto industry. Similar accusations have been made against exchanges like Coinbase and Binance in the past, but many projects have defended these exchanges against such allegations.
In a separate incident, the Financial Intelligence Unit (FIU) took regulatory action against Upbit in February 2025 for breaches of KYC obligations. The investigation revealed thousands of KYC violations and cases of incorrect or missing user address details. As a result, Upbit faced a temporary ban on new user crypto transfers, and the exchange owner challenged the regulatory action in court without success.
On March 20, 2025, Upbit imposed restrictions on some crypto accounts suspected of running Ponzi schemes, further highlighting the regulatory challenges faced by crypto exchanges in South Korea. With the crypto industry booming in the country, it is essential for authorities to crack down on unethical practices and ensure the protection of investors and the integrity of the market.
In conclusion, while South Korea remains a significant marketplace for the crypto industry, recent revelations about listing fees and regulatory actions against exchanges like Upbit raise concerns about transparency and compliance in the sector. Investors should exercise caution and conduct thorough due diligence before engaging with crypto exchanges or projects in the country.