The Monetary Intelligence Unit (FIU) sanctioned Dunamu, Upbit’s mum or dad firm, for conducting transactions with unregistered digital asset companies. Upbit additionally didn’t observe correct buyer verification procedures and didn’t report suspicious transactions. Together with the suspension, the alternate faces monetary penalties and personnel actions.
Upbit has acknowledged the violations and promised to strengthen compliance measures. The corporate assured customers that it could enhance transaction administration and monitor its system to stop future points.
This crackdown is a part of South Korea’s broader effort to tighten rules on the crypto business. Authorities launched an antitrust investigation into Upbit 5 months in the past, inspecting whether or not it engaged in monopolistic practices. Moreover, final month, Upbit confronted allegations of 700,000 Know Your Buyer (KYC) violations, following considerations about 600,000 potential breaches flagged earlier.
Regardless of regulatory challenges, Upbit stays a dominant participant out there. It was the primary Korean alternate to difficulty a public disclosure beneath the Digital Asset Consumer Safety Act seven months in the past. Two years in the past, it surpassed Coinbase and OKX in buying and selling volumes.
As South Korea prepares to introduce stricter crypto rules in 2025, Upbit might want to adapt to take care of its market place.
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