South Korean crypto exchange Upbit faces a three-month suspension on new user transfers following violations of local regulations.
One of the largest Korean crypto exchanges Upbit has been hit with a three-month suspension on new user transfers by the the Financial Services Commission due to violations of multiple financial regulations, South Korean newspaper JoongAng Ilbo has learned.
The limitations come as response due to the exchange’s failure to comply with trading restrictions, customer verification duties, and obligations to report suspicious transactions, the report reads.
Along with the suspension, the Korean financial watchdog also issued a warning to Dunamu’s CEO, Upbit’s parent company, and dismissed nine staff members, including the company’s compliance officer, the report reads.
Dunamu has acknowledged the intentions behind the regulatory action, stating that it is “carefully discussing future steps.” The company also reassured that while new user transfers are restricted, the service for existing users remains unaffected.
As crypto.news reported earlier, Upbit, which controls more than 70% of the local crypto market, came under scrutiny due to over 700,000 KYC violations discovered during a review of its business license renewal. Additionally, Upbit agreed to provide the largest payout ever to users following system failures triggered by the martial law declaration in December 2024, amid a coup in South Korea, when the government’s actions led to widespread unrest and major disruptions across the country.
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