South Korea’s Financial Services Commission will soon decide on sanctions against the country’s largest cryptocurrency exchange, the country’s largest cryptocurrency exchange, following flaws.
The upbit Crypto Exchange, which controls more than 70% local crypto market, has been found in violation of significant obligations to prevent money laundering. During the review of its business license renewal, more than 700,000 rules violations were discovered, According To Korea Times,
These violations may lead to a total fine of billions of shilling, with a penalty of up to $ 68,600 for each violation under the country’s Special Financial Transaction Act.
FSC Governor Kim Bug-Havan emphasized the urgency of the case, stating that a conclusion would reach rapidly. Speculation suggests that the upbit can withstand commercial suspension up to six months or penalty, the new user registration is potentially prohibited.
Digital asset ecosystem in South Korea has seen significant changes as the virtual asset user Protection Act was implemented in July 2024, increasing the regulatory pressure on the exchanges. The case of upbit is being closely viewed by the industry as it can set an example for more stringent regulation across the board.
The legal issues of the upbit follow the previous 2017 Bithamb data hack, highlighting more than 31,000 user accounts and resulting in strict rules for cryptocurrency companies in South Korea. Moving forward, FSC’s decision will clearly showcase the government’s dedication to a digital asset ecosystem that is safe and more obedient.
