TechFlow news — On January 16, according to South Korean media NAVER, the Korea Financial Intelligence Unit (FIU) issued a business suspension notice to Upbit, South Korea's largest cryptocurrency exchange, on January 9. The primary reason is violations of anti-money laundering obligations under the Act on Reporting and Using Certain Financial Transaction Information, particularly regarding customer identification (KYC). During inspections, FIU identified approximately 700,000 cases of inadequate KYC implementation, as well as illegal business dealings with unregistered overseas virtual asset service providers.
If finalized, Upbit will face restrictions on new user-related operations for up to six months. Currently holding over 70% of South Korea’s cryptocurrency trading market share, this penalty could impact the renewal of its business license. The FIU will convene a sanctions committee on January 21 to determine the final disciplinary measures.
