Upbit Faces Suspension From Country’s Regulator
Upbit, South Korea’s leading cryptocurrency exchange, is facing regulatory issues as it is accused of failing to comply with Know Your Customer rules. As a result, the platform could be suspended for six months, preventing it from registering new users.
The Financial Intelligence Unit, part of the Financial Services Commission, issued the suspension notice after reviewing Upbit’s business license renewal. It was discovered that between 500,000 and 700,000 improper KYC verifications had taken place.
Upbit could potentially face fines of $34.3 billion for these violations, with each violation carrying a penalty of up to $68,600 under the Special Financial Transactions Act.
Authorities also allege that Upbit violated laws related to transactions with unregistered foreign cryptocurrency service providers. According to a spokesperson for the FIU, this enforcement action is meant to uphold fairness and order in the cryptocurrency industry.
