The recent move of sanctions on Upbit shows a shift towards a stricter regulatory approach for the crypto industry in South Korea. The sanctions raise concerns within the virtual asset industry, with many questioning how they could impact Upbit’s upcoming business license renewal review.
Last year in October 2024, Upbit renewed its license, which is currently under review, and financial authorities are scrutinizing the company’s compliance following on-site inspections. In total, the FIU has discovered 700,000 cases of KYC violations.
In addition to the potential suspension of operations, the FIU is considering imposing fines of up to 100 million won per violation. The regulator has also found that Upbit has conducted business with unreported overseas virtual operators, which complicates the situation further.