Financial Regulator Imposes Business Suspension
South Korea’s Financial Intelligence Unit (FIU) has ordered a business suspension for Upbit, the country’s largest crypto exchange, citing approximately 700,000 violations of anti-money laundering (AML) and know-your-customer (KYC) policies. The suspension could last up to six months, depending on the final decision.Violations and Penalties
The FIU flagged Upbit for failing to meet local regulations, including serving overseas traders in violation of restrictions limiting domestic exchanges to South Korean citizens with verified real names. Upbit faces potential fines of up to 100 million Korean won ($68,596) per violation.Impact on Business Operations
Upbit’s business license expired in October 2024, and its renewal application is still under review. The exchange, which controls 70% of South Korea’s crypto market and ranks as the third-largest centralized exchange globally, may experience significant operational disruptions due to the penalty.Regulatory Scrutiny in South Korea
The penalty highlights increasing regulatory oversight in South Korea’s crypto sector. Upbit’s case underscores the challenges exchanges face in complying with stringent AML and KYC regulations, particularly as global crypto markets expand.
Read the full article on
theblock.
