Upbit Resume Deposit Services for KAVA and WAVES After Investment Warnings Removal

By 0xK2 On May 23, 2023

Upbit, South Korea’s leading cryptocurrency exchange, has made an important announcement that has grabbed the attention of investors. The exchange revealed that South Korean exchanges, under the umbrella of the Digital Asset Exchange Association (DAXA), have collectively decided to remove the investment warnings on two prominent digital assets, KAVA and WAVES. This move signifies a positive development for the cryptocurrency community, as it indicates a growing confidence in these particular assets.

DAXA member companies possess the authority to take precautionary measures, such as issuing investment warnings and designating assets as cautionary or warning items, to protect investors. These measures are based on risk indicators that vary according to the type of virtual asset. However, after careful consideration and monitoring, the investment warnings on KAVA and WAVES have now been lifted, allowing investors to once again deposit and trade these digital assets without the previously imposed limitations.

The decision to remove the investment warnings was driven by specific factors surrounding each asset. Let’s delve into the reasons behind the removal for both KAVA and WAVES.

KAVA, a digital asset available for trading on the KAVA/KRW and KAVA/BTC markets, had been designated as an investment cautionary item by DAXA on November 3, 2022. The cautionary designation was primarily due to concerns surrounding the stablecoin USDX, which is associated with KAVA. However, based on the recently released risk indicators by DAXA, which assess the risk associated with stablecoins and their collateralization, the concerns related to KAVA have been resolved. As a result, Upbit has officially lifted the investment warning on KAVA, effective May 23, 2023. It should be noted, though, that the future application of risk indicators may lead to a reinstatement of investment warnings or the discontinuation of trading support for KAVA.

WAVES, another prominent digital asset available on the WAVES/KRW and WAVES/BTC markets, faced a similar situation. On December 8, 2022, DAXA designated WAVES as an investment cautionary item due to issues surrounding the stablecoin USDN (now rebranded as XTN) associated with WAVES. However, after careful evaluation based on the risk indicators provided by DAXA, which consider the risk associated with stablecoins and their collateralization, the concerns have been addressed. Consequently, Upbit has lifted the investment warning on WAVES, effective May 23, 2023. As with KAVA, any future evaluations may result in the reinstatement of investment warnings or the discontinuation of trading support for WAVES.

Moreover, Upbit has also confirmed that deposit services for both KAVA and WAVES will be resumed soon. Users can expect their pending deposits to be processed sequentially once the deposit services are reactivated. However, it is essential for users to remain cautious, as the reactivation of deposit services may lead to sudden price fluctuations due to variations in exchange rates with overseas platforms.

DAXA member companies remain committed to ensuring investor protection. They continue to review and monitor the digital assets they support, promptly providing information and taking necessary measures to safeguard investors during times of crisis or heightened risks.

As the most trusted global standard in digital asset trading, Upbit remains dedicated to prioritizing the security and well-being of its users. The exchange assures its clientele that it will persistently strive for excellence in providing a secure trading environment.

In conclusion, the removal of investment warnings and the resumption of deposit services for KAVA and WAVES on Upbit bring positive news for South Korean cryptocurrency enthusiasts. These developments signify growing confidence in these digital assets and open up new opportunities for investors.

Join us on Telegram