In a coordinated display of operational diligence, two of South Korea's leading cryptocurrency exchanges, Upbit and Bithumb, have announced temporary suspensions of withdrawal services for specific tokens to facilitate major network upgrades on their respective blockchains.
Upbit Suspends FLOW Withdrawals for Flow Network Upgrade
Upbit, operated by Dunamu Inc., announced on April 10, 2025, a temporary suspension of withdrawals for the Flow (FLOW) token. This precautionary measure is a direct response to an upcoming and essential network upgrade on the Flow blockchain protocol, developed by Dapper Labs. The exchange emphasized that deposits and trading of FLOW against Korean Won (KRW), Bitcoin (BTC), and Tether (USDT) pairs will continue uninterrupted. The suspension is a standard industry practice to prevent users from accidentally sending funds to incompatible addresses during the technical transition, which could lead to permanent loss. Upbit has not provided a specific timeline for resuming withdrawals, stating services will reopen once the network upgrade is stable and internal systems are validated.
Bithumb Halts SEI Deposits and Withdrawals for Sei 'Nebula' Upgrade
Separately, Bithumb announced a strategic pause for the Sei (SEI) token. Effective at 9:00 a.m. UTC on February 3, 2025, the exchange will suspend all deposit and withdrawal services for SEI to support a major mainnet upgrade on the Sei Network, codenamed "Nebula." This upgrade aims to enhance transaction throughput, introduce new smart contract functionalities, and reduce gas fees. Similar to Upbit's action, Bithumb confirmed that spot trading of SEI will remain active. The suspension will last until the Sei network upgrade is deemed stable, with the exchange advising users to monitor official channels for the resumption announcement.
Industry Perspective and Regulatory Context
Industry analysts and experts view these suspensions as signs of robust operational security and responsible risk management. A blockchain infrastructure specialist from the Korea Blockchain Association noted that such actions demonstrate an exchange's technical diligence and adherence to strict custody protocols. These moves align with South Korea's stringent regulatory environment, where bodies like the Financial Services Commission (FSC) mandate strict consumer protection measures. The events highlight the mature, coordinated frameworks between centralized exchanges and decentralized blockchain protocols, ensuring user asset safety during critical technical transitions.
