South Korea's largest cryptocurrency exchange, Upbit, has received a three-month partial business suspension by the Financial Intelligence Unit (FIU), limiting new user transactions.
Reasons for Sanctions
The FIU cited Upbit's non-compliance with regulations prohibiting transactions with unregistered crypto asset service providers (CASPs) as the primary reason for the penalty. While the exchange remains operational for existing users, the sanctions emphasize increased scrutiny from South Korean regulators on crypto platforms.
Upbit's Response
In its official response, Upbit stated that the FIU's sanctions were based on findings from inspections conducted earlier in 2024. The exchange asserted it had already taken corrective actions as per financial authorities' requirements. However, Upbit suggested some factors might not have been fully considered by the regulator.
Existing Users
Despite the restrictions on new user transactions, Upbit clarified that existing customers can continue using all services without disruption. Current users retain full access to trading, deposits, and withdrawals.
The restrictions on Upbit highlight South Korea's efforts to enhance oversight of cryptocurrency exchanges, demonstrating that even major players in the industry are not immune to regulatory enforcement.
