Upbit Halts BingX Transfers Following Regulatory Guidance

VADODARA, January 12, 2026 — South Korean cryptocurrency exchange Upbit has suspended digital asset deposits and withdrawals with BingX, according to an official announcement. This latest crypto news follows regulatory guidance that removed BingX from Upbit's verified exchange list for account holder identification, impacting cross-platform liquidity and compliance standards in Asian markets.

Market Context & Background

South Korea has maintained stringent anti-money laundering (AML) and know-your-customer (KYC) regulations since the 2021 Virtual Asset User Protection Act. According to the Financial Services Commission (FSC), exchanges must verify counterparty platforms to prevent illicit fund flows. Underlying this trend is a global shift toward regulatory harmonization, as seen in the European Union's Markets in Crypto-Assets (MiCA) framework and U.S. SEC enforcement actions. Consequently, exchanges face increasing pressure to audit transaction partners, creating liquidity fragmentation. This mirrors the 2021 correction where regulatory crackdowns on unverified platforms led to significant market volatility and capital outflows.

Related developments include Polycule Trading Bot halting withdrawals amid DeFi rug pull fears, highlighting broader compliance stresses in crypto infrastructure.

What Happened?

On January 12, 2026, Upbit announced the suspension of all digital asset deposits and withdrawals to and from BingX. The exchange stated the decision follows guidance from regulatory authorities, leading to BingX's removal from its list of exchanges verified for account holder identification. According to the official Upbit notice, this action is immediate and affects all supported cryptocurrencies. No specific regulatory body was named, but historical patterns suggest involvement from South Korea's Financial Intelligence Unit (FIU) or FSC. Market analysts interpret this as a precautionary measure to align with AML Directive 5AMLD requirements, which mandate enhanced due diligence for cross-border transactions.

Technical Analysis & Price Action

Market structure suggests this news has minimal direct impact on Bitcoin's price, which holds at $90,674 with a 24-hour change of 0.03%. However, on-chain data indicates reduced arbitrage opportunities between Upbit and BingX could tighten liquidity spreads. The Relative Strength Index (RSI) on daily charts sits at 48, showing neutral momentum, while the 50-day moving average at $89,200 provides dynamic support. A Fair Value Gap (FVG) exists between $91,500 and $92,000, representing an Order Block where sell-side liquidity may cluster. Bullish invalidation is set at $88,500, a Fibonacci 0.618 retracement level from the recent swing high. Bearish invalidation rests at $93,000, above which a Gamma Squeeze could trigger short covering.

By The Numbers

Why It Matters

For institutions, this event the operational risks of non-compliance, potentially increasing due diligence costs and limiting partnership networks. Retail traders face reduced arbitrage efficiency and possible delays in fund transfers, affecting short-term trading strategies. The broader implication is regulatory fragmentation, where jurisdiction-specific rules create liquidity silos. According to Ethereum.org documentation on network upgrades, such fragmentation can hinder cross-chain interoperability, a critical factor for DeFi growth. This aligns with global trends where regulators prioritize consumer protection over market efficiency, potentially slowing adoption in regulated jurisdictions.

Community Sentiment

Market analysts on X/Twitter highlight the compliance domino effect. One observer noted, "Upbit's move signals that even large exchanges are tightening counterparty checks—expect more de-listings." Others point to the ongoing test of Bitcoin's $91k support as a more immediate concern, with regulatory news serving as background noise. Sentiment remains cautious, reflecting the Fear index score of 27.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds above $90,674 and regulatory fears subside, a rally toward $95,000 is plausible. Volume Profile analysis shows accumulation near current levels, suggesting institutional buying interest. The removal of unverified exchanges could strengthen compliant platforms, boosting long-term trust.

Bearish Case: A break below $88,500 invalidates bullish structure, targeting $85,000. Continued regulatory pressure may trigger a liquidity grab, exacerbating sell-offs. Historical cycles suggest such events often precede short-term volatility, with altcoins underperforming Bitcoin due to risk aversion.