3-Month Punishment Over Regulatory Violations
UPBIT is one of the largest trading volumes in South Korea, facing a three-month particle suspension to violate industry regulations.
This development comes as the culmination of regulatory fixtures on the platform following South Korea’s antitrust investigation into Upbit Exchange.
UPBIT suspends amid regulatory violations in South Korea
South Korean authorities approved Dunamu Company, the owner of UPBIT Exchange, to violate regulations related to virtual asset transactions. Local media Report On Tuesday, the violations included trading with unregistered virtual asset businesses.
UPBIT Exchange also reportedly failed to comply with the appropriate customer verification procedures and instead ignored reporting suspicious transactions. As a result, UPBIT faces a three-month partial suspension of its business.
Specifically, the authorities prohibit new customers from transferring virtual assets between March 7 and June 6, 2025.
In addition, the exchange is subject to personnel actions and economic fines. This development could damage Upbit’s weight in South Korea’s crypto exchanges.
Upbit acknowledged violations in a formal announcement on its website. The exchange also promises to take corrective measures to fully comply with the Laws and regulations.
The company regrets the inconvenience it has caused to its users and assured them of improvements in its transaction management. UPBIT also said it will monitor the system to prevent future violations.
“…We deeply sympathize with the purpose of the recent sanctions of the financial authorities, which aims to stabilize the establishment of anti-monetary money laundering systems and strengthen legal compliance systems through strict virtual asset operators,” he said. read Excerpts from the statement.
Despite the sanctions, existing UPBIT customers can continue trading without restrictions. Although new users can trade, they temporarily restrict the transfer of virtual assets (including deposits and withdrawals) to External wallet. UPBIT also stressed that the sanctions imposed may change through regulatory procedures.
South Korea tightens regulatory grip
At the same time, this Regulatory suppression It is part of a broader effort by authorities to implement stricter compliance measures in South Korea’s cryptocurrency sector. The latest fine comes after months of review of UPBIT.
The South Korean government initiated Antitrust Investigation Enter Upbit five months ago. Authorities checked whether the exchange was engaged in monopoly practices. In addition, just one month ago, Upbit’s operations were temporarily suspended 700,000 KYC allegations (Know your customer) Violation.
This is a continuation of concerns raised three months before this. As Beincrypto reported, South Korea’s financial regulators tagged UPBIT 600,000 violations of KYCprompt further regulatory actions.
South Korea is tightening its regulatory grip as Upbit browses during this period of regulatory scrutiny. The country’s plan Part 2 of the Encrypted Regulatory Framework In H2 2025.
These adjustments are because the people of the country constitute a significant The number of participants in the crypto market. Especially, starting from November 30% of South Korea’s population invests in cryingPTO.
While UPBIT is facing increased scrutiny, the company has also taken steps to comply with changing regulations. Seven months ago, it became the first release in South Korea Public disclosure according to the newly implemented virtual asset user protection law.
The move is seen as a positive step in keeping with the country’s new regulatory framework and improves transparency in the cryptocurrency industry.
Despite these regulatory challenges, UPBIT has historically maintained a strong position in the market. Two years ago, Better than major global exchanges like Coinbase and OKXtrading volume between South Korea exchanges while US rivals struggle. This advantage reflects the platform’s important user base and influence in the cryptocurrency industry.
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