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Upbit. (Photo = Dunamu) |
[Alpha Biz= Kim Sangjin] Financial Authorities Notify Upbit of Suspension Due to Alleged Violations of Anti-Money Laundering Obligations
The financial authorities have notified Upbit, the largest cryptocurrency exchange in South Korea, of a suspension due to alleged violations of Anti-Money Laundering (AML) regulations, including failures in the customer verification process (KYC). In response, Upbit stated that "the sanction has not been finalized."
According to financial industry sources on Thursday, the Financial Services Commission's Financial Intelligence Unit (FIU) has issued a preliminary notice to Upbit of a three-month suspension on the deposit and withdrawal of new customers for violating the Specific Financial Transactions Information Act. If the decision is confirmed, Upbit will be restricted from conducting business related to new customers during the suspension period, which could last up to six months, while existing users will still be able to trade.
Upbit has until January 20 to submit a statement to the FIU regarding the matter. After reviewing Upbit's explanation, the FIU will hold a disciplinary hearing on January 21 to finalize the suspension period and other sanction details.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
