The financial authorities have notified Upbit, the largest virtual asset exchange in the country, of a business suspension due to accusations of failing to comply with anti-money laundering obligations, including violations of the Know Your Customer (KYC) system.
According to the financial sector, the Financial Intelligence Unit (FIU) of the Financial Services Commission informed Upbit on the 9th about sanctions, centered on business suspension, related to violations of the Specific Financial Transaction Information Act.
If this sanction is finalized, Upbit will face restrictions on business related to new customers during the business suspension period (up to six months). However, trading for existing users will continue on Upbit.
Upbit accounts for more than 70% of the domestic virtual asset trading market based on trading volume. Upbit can submit a statement of opinion on this disposition to the FIU by the 20th.
The FIU is expected to hold a sanctions review committee meeting on the 21st to finalize the sanctions, including the business suspension period, after receiving an explanation from Upbit.
An Upbit official stated, “The sanction results have not been finalized yet,” and added, “We will earnestly explain the situation through future procedures, including the sanctions review committee.”
The official further explained, “The trading of virtual assets by existing or new users is not halted, and the key point is the restriction on new customers transferring virtual assets outside the exchange for a certain period.”
[Photo Source: Yonhap News]
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