Upbit Faces Suspension Notice Over KYC Violations from South Korean Regulator
South Korea's Financial Intelligence Unit (FIU) plans to issue a suspension order against Upbit for failing to meet anti-money laundering (AML) obligations and violating its customer identification system (KYC).
- The FIU notified Upbit of potential sanctions last week.
- If confirmed, Upbit must halt new customer registrations for six months, though existing users can still trade.
- Upbit holds over 70% market share in South Korea, making the suspension impactful.
- The exchange must respond to the FIU by January 20, with a sanctions hearing set for January 21.
- FIU uncovered 700,000 KYC violations during inspections.
- Fines could reach 100 million won per violation.
- Upbit is under scrutiny for conducting business with unreported overseas operators.
In parallel, South Korea is accelerating efforts to finalize its crypto regulatory framework, aiming for a draft by the second half of 2025.