South Korean authorities have suspended Upbit for new customers
Date: 2025-02-26 Author: Henry Casey Categories: IN WORLD
This decision, announced on February 25, is due to the exchange violating local legislation, according to which platforms cannot cooperate with unregistered cryptocurrency service providers (CASPs). The restrictions were introduced for a period of three months.
After the FIU's announcement, the exchange posted an official statement on its website, in which it expressed regret about the possible inconvenience to users. Upbit acknowledged the results of the inspections carried out by the regulator in 2024 and noted that it has already implemented the necessary changes in accordance with the requirements of the supervisory authority.
At the same time, the company clarified that the scope and duration of the sanctions may be revised depending on further circumstances. Upbit admits that the restrictions may be relaxed or completely lifted as part of regulatory procedures.
Existing clients of the exchange are not affected by these restrictions and can continue to use the platform as usual. However, the measures have had a negative impact on trading volumes - since January, the figures have decreased by about 70%, with the average daily turnover now amounting to $4.6 billion.
Founded in 2017, Upbit is the largest centralized crypto exchange in South Korea and ranks 23rd in the world trust rating according to CoinGecko. Earlier, it was reported that the exchange may face additional fines due to non-compliance with Know Your Customer (KYC) requirements. The FIU identified more than 600,000 violations in customer identification procedures by the end of 2024, which was one of the factors in the introduction of new sanctions.
