Upbit, the largest exchange in South Korea, faces partial suspension of business due to lack of anti
According to a report by Yonhap News Agency, South Korea's financial regulatory agency imposed a partial suspension of business on Upbit, the country's main cryptocurrency exchange, on Tuesday due to the platform's failure to fulfill its anti money laundering obligations.
According to the announcement released by the Financial Intelligence Unit (FIU) under the Financial Supervisory Commission (FSC) of South Korea, the three-month business suspension measures will take effect from March 7th to June 6th, during which new customers will be prohibited from transferring encrypted assets (deposits and withdrawals) to others.
However, new customers are still allowed to engage in cryptocurrency trading and Korean won deposits and withdrawals, and existing customers can continue to engage in cryptocurrency trading without restrictions. According to FIU, the purpose is to prevent money laundering and illegal fund flows. The regulatory agency also notified Upbit's parent company Dunamu that it will impose penalties on its senior executives responsible for compliance and other relevant personnel.
FIU pointed out that, Upbit Conducted approximately 44900 cryptocurrency transfers with 19 unregistered cryptocurrency exchanges, violating relevant regulations. The regulatory authorities had requested Dunamu to take measures against its violations, but the exchange failed to fulfill its obligations and violated the relevant regulations for customer verification.
Upbit The cryptocurrency market in South Korea has a market share of over 70%. In addition to this anti money laundering issue, the exchange is also facing anti-monopoly investigations due to market monopolies and unfair business practices.
