South Korea’s regulator issues suspension warning to Upbit over 700,000 KYC violations

The South Korean regulator is set to suspend Upbit’s operations, citing the exchange’s failure to properly implement KYC processes.

South Koreathe EU financial regulator, the Financial Intelligence Unit, has notified Upflowthe country’s largest crypto exchange, from potential suspension for violation of KYC requirements and AML obligations, the Maeil Business Newspaper learned.

The report states that the FIU sent a notice to Upbit on January 9, warning that the exchange could be subject to a suspension of up to six months. During this period, it will not be allowed to onboard new clients, although existing users will be able to continue trading. Upbit has until January 20 to respond to the FIU’s findings. After reviewing Upbit’s explanations, the FIU will make a final decision regarding the suspension.

The regulator is also investigating whether Upbit violated any rules by doing business with unregistered foreign crypto companies. Upbit said it was difficult to identify the currencies in advance, but insisted there was no intention to break the law.

Like crypto.news reported Earlier, following the discovery of Upbit’s violations, the FIU suspended the exchange’s license renewal as South Korean authorities needed more time to review the large number of alleged KYC violations. As a result of these violations, Upbit could be fined up to 100 million Korean won (approximately $71,500) per case, potentially accumulating up to 35.8 billion Korean won (27 million dollars) due to the high volume of cases involved.