UPBIT Halts Cosmos Deposits Withdrawals for Network Upgrade

UPBIT, a leading cryptocurrency exchange in South Korea, has announced a temporary suspension of Cosmos (ATOM) deposits and withdrawals to accommodate an essential network upgrade. This strategic move is aimed at ensuring the security of digital assets and maintaining compliance with regulatory standards, while allowing trading activities to continue uninterrupted for user convenience.

The suspension, which began on February 12, 2025, at 18:00 KST, is in line with the Virtual Asset User Protection Act Enforcement Decree Article 17. This decree underscores UPBIT's commitment to safeguarding investor interests during technical updates. The exchange's proactive approach to maintaining the security and integrity of digital assets during scheduled network upgrades is a standard practice in the crypto industry. This measure is designed to prevent transaction errors or asset loss during technical transitions.

While deposits and withdrawals are paused, UPBIT has assured users that trading of Cosmos (ATOM) tokens will continue without disruption. This approach minimizes inconvenience for users and preserves market liquidity. Historical data from previous Cosmos upgrades indicate that such suspensions rarely affect market prices or trading volumes significantly, provided the upgrade proceeds smoothly. UPBIT’s transparent communication and adherence to regulatory guidelines reinforce its reputation as a reliable platform committed to user asset protection.

Network upgrades necessitating temporary transaction halts are common across major cryptocurrency exchanges, which have adopted similar protocols for Cosmos upgrades. These pauses are critical for implementing security patches, protocol improvements, and performance enhancements. Experts emphasize that these measures are essential to mitigate risks such as double-spending, network forks, or other vulnerabilities during the upgrade window. The consistent market resilience observed during past upgrades demonstrates investor confidence in these procedural safeguards.

UPBIT’s adherence to the Virtual Asset User Protection Act Enforcement Decree Article 17 exemplifies the increasing regulatory oversight in South Korea’s crypto market. This legislation mandates exchanges to prioritize user protection during technical events, ensuring that asset security is not compromised. By integrating these regulatory requirements into operational protocols, UPBIT not only complies with legal standards but also enhances user trust and market stability.

UPBIT’s temporary suspension of Cosmos (ATOM) deposits and withdrawals underscores the importance of rigorous security measures during network upgrades. By maintaining trading activities and complying with regulatory mandates, UPBIT balances operational continuity with asset protection. This measured approach, mirrored by other industry players, highlights the evolving maturity of cryptocurrency exchanges in managing technical risks while fostering a secure trading environment.