Key Takeaways:
- Upbit Suspended: South Korea’s FIU imposed a three-month ban on Upbit’s new customer transactions due to alleged violations of regulations against unregistered CASP dealings.
- Upbit’s Response: The exchange acknowledged the sanctions, stating that regulatory decisions could still change through further procedures.
- Market Impact: Existing users remain unaffected, but Upbit’s trading volumes have plunged 70% since January amid regulatory scrutiny.
South Korean cryptocurrency exchange Upbit has been hit with a three-month ban on new customer transactions by the country’s Financial Intelligence Unit (FIU).
Announced on February 25, the suspension prevents new users from making deposits or withdrawals due to Upbit’s alleged violations of regulations prohibiting transactions with unregistered crypto asset service providers (CASPs).
SOUTH KOREA'S UPBIT FACES PARTIAL SUSPENSION OVER REGULATORY VIOLATIONS
— BSCN (@BSCNews) February 25, 2025
– On February 25, 2025, South Korea’s Financial Intelligence Unit (FIU) penalized Upbit, the nation’s leading cryptocurrency exchange, issuing a partial business suspension.
– This measure halts new… https://t.co/qCaMOYew7a pic.twitter.com/9J1LbavKFu
Upbit responded with a public statement acknowledging the FIU’s decision and apologizing for any inconvenience.
The exchange stated that it has implemented improvements to address regulatory concerns but suggested that certain aspects of the decision may not have been fully considered.
Upbit noted that the sanctions could change pending further regulatory discussions and assured users that updates would be provided if an agreement is reached.
South Korea’s Financial Services Commission has suspended some businesses of Dunamu, the parent firm of the country’s largest cryptocurrency exchange Upbit, for three months over violation of certain rules. (Bloomberg) https://t.co/kHWYqtkRZC
— Financial Services Commission – FSC Korea (@FSC_Korea) February 25, 2025
Existing customers remain unaffected and can continue trading, but the regulatory scrutiny has taken a toll on Upbit’s business.
Reports indicate that South Korean authorities have been investigating Upbit over Know Your Customer (KYC) violations, with previous probes identifying up to 600,000 breaches.
As a result of increased regulatory pressure, Upbit’s trading volumes have declined by 70% since January.
Founded in 2017, Upbit is South Korea’s largest centralized exchange and ranks 23rd globally by trust score on CoinGecko.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
