South Korean regulators have suspended the major crypto exchange Upbit for three months due to compliance issues related to AML and KYC violations.
Reasons for Upbit's Suspension
Regulators discovered Upbit's links to unregistered virtual asset companies and failing to meet AML and KYC standards. The exchange faces penalties and internal reviews as a result of these violations.
Impact on Users and Market
From March 7 to June 6, 2025, new users cannot transfer virtual assets but can continue trading. Nevertheless, restrictions might change after discussions with regulators. This action follows increased scrutiny of the crypto market in the country.
Future Actions and Regulation
South Korea plans to launch a new regulatory framework for cryptocurrencies by late 2025 to strengthen oversight and protect consumers. Upbit remains a market leader, showing commitment to complying with regulations.
Upbit's response to these penalties will be crucial for its future regulatory standing and market position. The growing attention to the crypto industry demands enhanced oversight and new regulations.
