According to what was reported by Dunamu in Upbit, a lawsuit against the South Korea Financial Intelligence Unit (FIU) – a portion of the higher market organizations in the market, the financial services unit (FSC) – challenge its imposed penalties.
Donamo He said The state -funded YonhaP news agency on February 28, which filed a lawsuit before the Seoul Administrative Court on February 27, is seeking to cancel the suspension of the partial work of FIU. The company also applied for a judicial order to stop the enforcement of the penalties.
FiU’s lawsuit Partial suspension of Upbit operationsIt restricts the exchange of processing external encryption transactions for new customers. Services for existing customers are still not affected.
In addition to the comment, FIU also imposed disciplinary measures against Upbit and its executives to violate local regulations. A total of nine executives, including CEO, faced disciplinary procedures.
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While the CEO received official reprimand, the company’s compliance official became the first official in compliance with a South Korean encryption exchange rejected by the organizers.
How Upbit’s monopolistic doubts led to a partial trade ban
Upbit was founded in 2017, the largest exchange of cryptocurrencies in South Korea. In October 2024, during the parliamentary audit, FSC faced its plans Investigate possible violations to combat monopoly by paying attention.
South Korean legislator FSC blames a favorite playing with Upbit in the government check in October. source: National Assembly
FIU announced in November it was Determine at least 500,000 violations related to customer compliance (KYC) In Upbit. This was followed by a Work suspension notice In January 2025.
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Kyc violations of the alleged Opest and suspicious transactions
Fiu Upbit was accused of facilitating about 45,000 transactions with unregistered foreign encryption exchanges, which claims to be a violation of Work to report and use the specific financial treatment information.
Organizers also define serious deficiencies in Upbit customer verification operations, such as accepting video cards instead of original copies and approving introductions with the main blocked identification details.
In cases where customers provided driving licenses to verify, FIU found approximately 190,000 cases where checks were only conducted based on personal information without verifying the card authenticity using the encrypted serial number on driving licenses in South Korea. While re -identifying the customer, the probe selected more than 9 million cases in which official definition documents were not collected.
During the Upbit Customer Verification System Test, a subcontractor contractor deals with KYC operations in Dunamu to an identity card as part of the test. The system is achieved from this as a legitimate identifier. However, since this was made for system test purposes, FIU did not classify it as an organizational violation.
The drawing passes the APBIT verification system. Source: Financial Intelligence Unit
Response to restriction, upbit He said In a statement that she reviewed the necessary improvements and completed the necessary corrective measures.
“However, we believe that some circumstances and details related to the reasons for some sanctions and their intensity have not been entirely considered. Therefore, we will be loyal to these points through the procedures stipulated in the relevant regulations.”
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