Upbit crypto exchange faces sanctions in South Korea

The South Korea Financial Services Committee will soon make a decision on the sanctions against Upbit, the largest cryptocurrency exchange in the country, following Tourifications in customer identity checks.

Upbit Crypto Exchange, which controls more than 70% of the local cryptography market, was found in violation of essential obligations to prevent money laundering. More than 700,000 rules of rules were discovered during an examination of its renewal of commercial license, according to has Korea Times.

These violations could lead to fines totaling billions of shillings, with penalties of up to $ 68,600 for each violation under the law on special financial transactions of the country.

Kim Byoung-Hwan, Governor of the FSC, stressed the urgency of the case, declaring that a conclusion would be reached quickly. Speculation suggests that Upbit could face a trade suspension of up to six months or a fine, with a new registration of potentially restricted users.

The digital asset ecosystem in South Korea experienced a significant transformation since the user protection law of virtual assets was promulgated in July 2024, increasing regulatory pressure on trade. Upbit case is closely monitored by industry, as it could create a precedent for stricter regulations in all areas.

Upbit legal Problems follow a Bithumb data hack 2017, which has exhibited more than 31,000 user accounts and resulted in more strict rules for cryptocurrency companies operating in South Korea. In the future, the FSC’s decision will clearly demonstrate the government’s dedication to an ecosystem of digital assets which is safer and more in line.