South Korea’s regulators are expected to soon make a decision to sanction Upbit for violating customer verification norms.
South Korea’s Upbit to be Sanctioned ?
Kim Byung-hwan, Chairman of South Korea’s Financial Services Commission (FSC), announced that a decision will soon be made to sanction Upbit for breaching customer verification requirements.
Chairman Kim stated, “I have expressed my intention to resolve this issue more quickly than other sanctions, given its potential impact on the market, and we are proceeding accordingly.” He added, “However, the process has been delayed somewhat due to several meetings to gather input from the parties involved.”
Upbit, South Korea’s largest cryptocurrency exchange, received a suspension notice from the FSC for failing to comply with customer verification (KYC) procedures and anti-money laundering obligations. On January 9, the Financial Intelligence Unit (FIU) of the FSC issued a preliminary notice of sanctions against Upbit for violations of the Specific Financial Transaction Information Act.
According to local media reports, financial institutions need to verify the identity of customers using their ID cards to prevent money laundering, but Upbit was found to have handled this process poorly.
If the sanctions are finalized, Upbit will face restrictions on acquiring new customers for up to six months. However, existing users will be unaffected, and their transactions will proceed as normal. Currently, Upbit holds over 70% of the trading volume in South Korea’s virtual asset market.
Also Read: Australia’s Anti-money Laundering Regulator Warns Crypto Trading Platforms
