Upbit, one of the largest Korean exchange operations through trading volume, is facing a three -month suspension to violate industry regulations.
This development is the culmination of organizational provinces on the platform after South Korea’s move to open an anti -monopoly investigation against UPbit.
Upbit was suspended amid organizational violations in South Korea
The South Korean authorities have the Punishment of Dunamu, the owner of Expit Exchange, to violate the regulations related to the circulation of apparent assets. Local media I mentioned On Tuesday that violations included engaging in transactions with unregistered virtual asset companies.
According to what was reported, ExchandE Exchange also failed to adhere to the procedures for checking the appropriate customers and neglecting the reporting of suspicious transactions. As a result, Upbit has a partial suspension of commercial operations for a period of three months.
Specifically, the authorities prevented the new agents from transferring virtual assets between March 7 and June 6, 2025.
In addition, the stock market is subject to employee work and a financial punishment. This development can harm the weight of UPbit between the exchange of Korean encryption.
In an official advertisement on his website, Apbit admitted violations. The Stock Exchange also committed to take corrective measures to completely comply with legal regulations.
The company expressed regret the inconvenience caused by users and assured them of improvements to transactions management. Upbit also said it would monitor the system to prevent future violations.
“… we are severely sympathetic to the purpose of the recent penalties for the financial authorities, which aim to establish a steady anti -money -laundering system and enhance the legal compliance system through strict discipline on virtual asset operators,” Read Excerpt in the statement.
Despite the sanctions, current Upbit customers can continue trading without restrictions. Although new users can trade, they temporarily reside to transfer virtual assets, including deposits and clouds, on external portfolios. Upbit also emphasized that the penalties imposed may be subject to changes through organizational procedures.
South Korea tightens an organizational grip
Meanwhile, this organizational campaign is part of a wider effort by the authorities to impose strict compliance measures in the encryption sector in South Korea. Recent sanctions follow months of increased Upbit.
The South Korean government launched a combat monopoly in Upbit five months ago. The authorities studied whether the stock exchange participated in monopolistic practices. Moreover, just one month ago, APPit operations were temporarily suspended amid allegations of 700,000 Kyc (Know your customer).
This was a continuation of the concerns that were raised three months ago. As reported by Beincrypto, the South Korea Financial Authority reported 600,000 possible violations of KYC, which led to more regulatory measures.
While Upbit is moving this period of organizational audit, South Korea tightens its organizational grip. The country plans to present the second part of its regulatory framework for encryption in H2 2025.
These amendments come at a time when the country’s residents include significantly The number of participants in the encryption market. Specifically, as of November, it is over 30 % of the South Korean population invests in tearsPto.
While Upbit is now facing intense scrutiny, the company also took steps to comply with the changes. Seven months ago, the first exchange in South Korea to issue a general disclosure under the newly implemented User Protection Act.
This step was considered a pre -emptive step in compliance with the new organizational framework in the country and improving transparency in the encrypted currency industry.
Despite these organizational challenges, UPbit has historically maintained a strong market situation. Two years ago, it outperformed major global exchanges such as Coinbase and OKX, which leads to trading volumes between Korean exchanges while its American competitors were fighting. This dominance reflects the important user base for the basic system and influence the encrypted currency industry.
Disintegration
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