Upbit coin exchange promotes education for investor protection

A man passes by the head office of Upbit in southern Seoul in this undated file photo. Yonhap

With Korea’s first law on virtual asset user protection set to take effect on July 19, cryptocurrency exchanges appear to be focusing on creating a what Upbit calls a “healthy investment environment.”

Upbit, the country’s largest coin exchange, is attracting attention as it has been proactively engaged in investor education for investor protection.

“We believe that investor education should accompany the establishment of technical systems to foster a healthy investment environment. That’s why Upbit has positioned itself as a bridge connecting participants and investors in the virtual asset market,” an Upbit spokesperson said.

Upbit thus launched the Upbit Investor Protection Center in December 2021. It has been offering diverse virtual asset information for investors since its establishment.

As the virtual asset market lacks a separate disclosure system, which the stock market has, it is relatively difficult for investors to obtain reliable information. Upbit thus has been leading efforts to resolve information asymmetry issues there, even before the adoption of the investor protection-related laws.

The Upbit Investor Protection Center offers various educational resources for investors, ranging from basic knowledge essential for virtual asset investment to laws, regulations and measures to prevent financial damages from failed investments.

One of the center’s key services is offering Korean translations of virtual asset whitepapers. While it is essential for investors to understand the assets they are investing in accurately, Korean investors often face difficulties as most virtual asset whitepapers are in English. The Upbit Investor Protection Center has been offering Korean versions of whitepapers that detail the operational methods, structure, vision and plans of virtual assets supported by Upbit.

The center also provides “Caddy Report,” which enables users to learn about critical virtual asset-related issues in five minutes every day.

One of the latest versions of the report introduced the direction of the virtual asset industry after the U.S. presidential election scheduled on Nov. 5. While the current Biden administration is continuing strong virtual asset regulations, former 커뮤니티 President and Republican nominee Donald Trump has been drawing investors’ attention by suggesting eased policy on virtual assets. The Caddy Report noted that the U.S. presidential election will be a key event determining where the virtual asset industry will go since the two candidates are taking opposite positions.

It also provided summaries of the virtual asset user protection act last year. The law, which will take effect from July 19, was condensed and organized into 16 pages so that investors can easily understand it at a glance.

As virtual assets are traded internationally, it is crucial for investors to have knowledge of international laws and regulations. The center thus has been offering information on regulations around the world.

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