UpBit, South Korea’s Largest Exchange, Will Reward Users Who Report ScamsMar 29, 2018, 10:17PM
South Korea’s largest crypto exchange, UpBit, is offering a reward of 1 million Won (≈ 940 USD) to users who report fraudulent ICOs
UpBit, South Korea’s largest cryptocurrency exchange by volume, is now offering rewards to users who report fraudulent ICOs and spoofing scams. The incentive program is designed to encourage UpBit users to help combat the increasingly prevalent scams threatening the security of South Korea’s crypto-market.
The UpBit rewards program offers 1 million Won (≈ 940 USD) to users who report attempted scams. If the same scam is reported by multiple users, the first user to report it will receive the reward. UpBit has even created a dedicated app to simplify information submissions. The company will offer the rewards program until March 2019, at which point, they will re-evaluate whether it is still necessary.
In response to the current pervasiveness of fraud in the crypto-world, Upbit has already been working alongside regulators to help track down potential scams. This year to date, Upbit has discovered and reported 20 scams to the South Korean police. The new reward program will expand upon these efforts by calling on users of the exchange to help self-regulate the crypto-market.
Without uniform regulations in place, self-regulation has rapidly become the first line of defense for crypto exchanges worldwide. After a 500 million dollar theft of NEM coins from Japanese exchange Coincheck, Japanese exchanges banded together to create an association to provide regulatory policies from within the Japanese crypto-community. In the United States, CFTC commissioner Brian Quintenz recently suggested the US crypto-community should create a self-regulatory organization (SRO) to protect the market as a stopgap while government agencies continue the long process of creating regulations. Supporters of regulation would argue that with the lack of a legal or regulatory framework in today’s crypto-markets, initiatives like UpBit’s rewards program are essential to helping large exchanges keep their communities safe.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.