Cryptocurrency exchange Upbit could face sanctions in South Korea for failing to comply with the country’s money laundering and know your customer (KYC) obligations, according to a report by the cryptocurrency exchange Upbit. local information Maeil.
Upbit, one of South Korea’s largest exchanges, was reportedly informed of the sanctions last week by the Financial Information Analysis Institute (FIU) under the Financial Services Commission. If the decision is upheld, Upbit may be prevented from carrying out new customer-related activities for up to six months.
The decision would “essentially restrict new customers from transferring virtual assets outside of the exchange for a certain period of time,” Upbit told Maeil.
CoinDesk has contacted Upbit and the Financial Services Commission for comment.
The exchange will submit a notice regarding the sanctions against Upbit to the FIU by the 20th and the FIU will then review the sanctions.
South Korean authorities have pledged to take a closer look at the exchanges in 2022 following the collapse of stablecoin issuer Terra, calling on regulators to thoroughly supervise them.
