Regulation
South Korea Regulator Suspends Upbit Operations Over KYC Violations
In the latest development in the Upbit scrutiny, South Korea ordered the platform to suspend its business operations. Citing violations of Know-Your-Customer (KYC) rules and anti-money laundering laws, South Korea notified the exchange about the suspension. Upbit’s future services in the country remain in jeopardy as the exchange has received severe-than-expected sanctions.
Upbit To Suspend Business in South Korea
The South Korean Financial Intelligence Unit has warned Upbit crypto exchange over its alleged violations of the Specific Financial Transaction Information Act. Reportedly, this warning could affect Upbit’s future in South Korea, with a possible halt of services for up to six months. As per the notice, the crypto platform would be restricted from new customer-related activities while existing clients could continue their trade.
Notably, a disciplinary hearing is scheduled on January 21 over the exchange’s KYC violations. Upbit could submit its response by January 20. The FIU’s sanctions-level meeting is expected to evaluate Upbit’s regulatory compliance. During Upbit’s virtual asset service provider (VASP) license renewal program, South Korea discovered more than 500,000 cases related to KYC violations. As these cases include account approval without proper identification, they are considered as unauthorized customer verifications.
How Will Upbit’s KYC Violations Impact the Broader Crypto Industry?
The crypto market is keenly observing the developments within the Upbit case. As of now, the regulators haven’t decided the extent of sanctions, including the possible fines. The industry expects explanations from Upbit on January 21, which would lead to further decisions in the case. Usually, the authority could impose up to 100 million won ($68,592) for violations of customer verification regulations.
South Korea has been at the forefront of crypto regulations, driven by its vision of fostering market expansion and customer security. Its recent efforts highlight its commitment to tackling increasing illegal crypto practices in the country. Further developments in the case could significantly impact the global crypto regulatory landscape.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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