The Monetary Intelligence Unit (FIU) sanctioned Dunamu, Upbit’s father or mother firm, for conducting transactions with unregistered digital asset companies. Upbit additionally didn’t comply with correct buyer verification procedures and didn’t report suspicious transactions. Together with the suspension, the alternate faces monetary penalties and personnel actions.
Upbit has acknowledged the violations and promised to strengthen compliance measures. The corporate assured customers that it might enhance transaction administration and monitor its system to stop future points.
This crackdown is a part of South Korea’s broader effort to tighten laws on the crypto business. Authorities launched an antitrust investigation into Upbit 5 months in the past, analyzing whether or not it engaged in monopolistic practices. Moreover, final month, Upbit confronted allegations of 700,000 Know Your Buyer (KYC) violations, following considerations about 600,000 potential breaches flagged earlier.
Regardless of regulatory challenges, Upbit stays a dominant participant out there. It was the primary Korean alternate to problem a public disclosure beneath the Digital Asset Consumer Safety Act seven months in the past. Two years in the past, it surpassed Coinbase and OKX in buying and selling volumes.
As South Korea prepares to introduce stricter crypto laws in 2025, Upbit might want to adapt to keep up its market place.
