Cryptocurrency exchange Upbit may face possible sanctions in South Korea for failing to comply with the country’s money laundering and know-your-customer (KYC) obligations, according to a report from local news site Maeil.
Upbit, which is one of the largest exchanges in South Korea, was notified last week by the Financial Information Analysis Institute (FIU) under the Financial Services Commission about the sanctions. If the decision is upheld, Upbit could be prevented from conducting new customer-related business for up to six months.
The decision would “basically 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 an opinion on the sanctions on Upbit to the FIU by the 20th and the FIU will then review the sanctions.
South Korean authorities vowed to take a closer look at exchanges in 2022 following the collapse of stablecoin issuer Terra, and called on regulators to closely monitor them.
