South Korea's regulatory body is about to suspend Upbit's operations, citing the exchange's failure to properly implement KYC processes.

South KoreaThe Financial Intelligence Unit, the UAE's financial regulator, was notified Obitthe country's largest cryptocurrency exchange, is due for a possible suspension over violations of know-your-customer requirements and anti-money laundering obligations, Mail Business reported. I've learned.

The FIU issued a notice to Upbit on January 9, warning that the exchange could face a suspension of up to six months, the report said. During this time, onboarding of new clients will not be allowed, although existing users can continue trading. Upbit has until January 20 to respond to the Financial Intelligence Unit's findings. After reviewing Upbit's interpretation, the FIU will make a final decision on the suspension.

The regulator is also investigating whether Upbit has violated any rules by dealing with unregistered foreign cryptocurrency companies. Upbit said it was difficult to identify foreign exchanges early on, but insisted there was no intention to break the law.

Such as crypto.news I mentioned Earlier, after discovering Upbit's violations, the Financial Intelligence Unit suspended the exchange's license renewal as South Korean authorities need additional time to examine the large number of suspected KYC violations. Due to these violations, Upbit could face fines of up to 100 million KRW (about 71,500 USD) per case, potentially accumulating to 35.8 billion KRW (27 million USD) due to the large volume of cases involved.