Upbit May Face Sanctions in South Korea for Not Complying with Money-Laundering Requirements: Report
Crypto exchange Upbit could face possible penalties in South Korea for not complying with the country’s money laundering and know your customer (KYC) obligations, according to a report from a local news site Mael.
Upbit one of the of South Korea largest exchange was reportedly notified by the Financial Information Analysis Institute (FIU) under the Financial Services Commission last week of sanctions. If the decision is confirmed, Upbit could be barred from new business related to the customer for up to six months.
The decision “will essentially restrict new customers from transferring virtual assets outside the exchange for a certain period of time,” Upbit said. Mael.
CoinDesk has reached out to Upbit and the Financial Services Commission for comment.
The exchange will submit an opinion about the Upbit sanctions to the FIU on the 20th and the FIU will then review the sanctions.
South Korean authorities promised to look closely at exchanges in 2022 following the collapse of stablecoin issuer Terra, calling on regulators to monitor them more closely.
