Upbit Faces Business Suspension Over Alleged AML Policy Violations in South Korea

South Korea's largest cryptocurrency exchange, Upbit, is facing business suspension due to alleged Anti-Money Laundering (AML) policy violations.

The Financial Intelligence Unit (FIU) ordered the suspension on January 9, citing Upbit's failure to meet Know Your Customer (KYC) obligations during an on-site inspection in August.

Approximately 700,000 instances of suspected KYC-related violations were uncovered, with potential fines reaching up to $68,596 per violation under South Korea's Act of Reporting and Use of Specific Financial Information.

The FIU also expressed concerns over Upbit's services to overseas traders, which conflicts with local regulations restricting domestic exchanges to verified South Korean citizens.