Upbit Faces Sanctions Amidst AML Violations

Upbit, South Korea's largest cryptocurrency exchange, is facing potential sanctions from the Financial Intelligence Unit (FIU) due to violations of Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, with approximately 700,000 improper KYC instances possibly resulting in fines of up to 100 million won per violation. The sanctions could lead to a suspension of Upbit’s operations, limiting new customer engagements for up to six months, although existing users can continue trading. Upbit, which controls over 70% of the South Korean crypto market, is under heightened regulatory scrutiny due to its market dominance and alleged unfair practices. Upbit has until January 20 to submit a defense, with a final decision expected on January 21. This situation highlights South Korea's intensified efforts to enforce stricter AML measures in the wake of Terra's collapse, illustrating the broader regulatory risks in the crypto sector.