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Crypto exchange Upbit hit with operating suspension over antimoney laundering lapse

Published: 25 Feb. 2025, 18:09

The price of Bitcoin is displayed on a screen at the Upbit Lounge in Gangnam District, southern Seoul, on Nov. 21, 2024. [NEWS1]

Korea's financial authorities Tuesday imposed a partial business suspension on Upbit, the country's most dominant cryptocurrency exchange, over a lapse in antimoney laundering obligations.

The three-month business suspension will be effective from March 7 to June 6, prohibiting new customers from transferring cryptocurrency assets to others, according to the Financial Intelligence Unit (FIU), which is under the Financial Services Commission, the country's financial regulator.

But new customers will be allowed to trade digital assets, and withdraw or deposit money.

Upbit's existing customers will be also allowed to continue to trade cryptocurrency assets without curbs, according to the FIU, which aims to prevent money laundering and illegal fund flows.

The FIU also informed Dunamu, the operator of Upbit, of sanctions against employees in charge of compliance and others.

The antimoney laundering agency said Upbit had some 44,900 rounds of cryptocurrency asset transfers with 19 unregistered exchanges, which violates related laws.

The FIU had ordered Dunamu to take action to rectify the violations, but the cryptocurrency exchange failed to comply.

Also, Dunamu violated customer verification obligations, according to the FIU.

Upbit, which dominates the local cryptocurrency exchange market with a share exceeding 70 percent, is also facing an antitrust investigation over market dominance and unfair business practices.

Yonhap