Upbit Faces Potential Suspension and Fines for AML Violations
- Upbit, South Korea’s largest crypto exchange, may face business suspension and fines due to anti-money laundering (AML) violations.
- The Financial Intelligence Unit (FIU) found approximately 700,000 failures in Upbit’s Know Your Customer (KYC) procedures.
- Sanctions could prevent Upbit from onboarding new customers for up to six months while allowing existing users to continue trading.
- Violations under the Specific Financial Transaction Information Act can lead to fines of up to 100 million won per case.
- The FIU also accused Upbit of transactions with unregistered overseas crypto businesses.
On January 9, the FIU issued a preliminary notice of sanctions against Upbit following an investigation that revealed around 700,000 KYC failures. The sanctions could impact Upbit’s ability to renew its business license.
