Why Is FLOW Still Under Regulatory Scrutiny?
South Korea’s leading exchange Upbit has extended the risk alert period for the FLOW token until February 13, 2026, at 22:59 KST. This move reflects ongoing concerns over compliance, transparency, and investor safeguards—issues that remain unresolved despite recent project updates.
What’s Holding Back Regulatory Clearance?
The Digital Asset Exchange Association (DAXA) emphasized that FLOW’s on-chain activity raises questions about traceability and potential misuse. While the team has submitted disclosures, they fall short of full regulatory expectations.
- Unusual transaction patterns detected in recent chain analysis
- Difficulty in tracing origins of certain high-value transfers
- Lack of independent audit reports confirming compliance
These factors contribute to prolonged uncertainty. As a result, DAXA supports the extension to allow time for deeper evaluation and enhanced safeguards.
What Should Investors Do Now?
FLOW remains tradable during the warning period, but with stricter risk controls and no margin or derivatives access. Investors are advised to reassess exposure, avoid emotional trading, and rely on verified data before making decisions. Stay tuned for official updates and third-party security assessments.