Seoul: South Korea's financial authorities have imposed a partial business suspension on Upbit, the country's leading cryptocurrency exchange, due to a lapse in anti-money laundering obligations. The suspension will last for three months, from March 7 to June 6, restricting new customers from transferring crypto assets to others.
According to Yonhap News Agency, the Financial Intelligence Unit (FIU), under the Financial Services Commission, announced that new customers will still be permitted to trade crypto assets and manage their funds through deposits or withdrawals. Existing customers of Upbit will be allowed to continue trading without restrictions.
The FIU has also notified Dunamu, the operator of Upbit, about sanctions against its compliance officials and others involved. The agency revealed that Upbit engaged in approximately 44,900 rounds of crypto asset transfers with 19 unregistered exchanges, which is against the law. Despite being ordered to address these violations, Dunamu failed to comply with the obligations.
Additionally, Dunamu has been accused of not adhering to customer verification rules. Upbit, which holds more than 70% of the local crypto exchange market, is also under scrutiny from an antitrust investigation concerning market dominance and unfair business practices.