A South Korean court temporarily highlighted the business suspension of the Krypto Exchange Upbits, which prohibited the trading platform for 3 months to serve latest customers.
On February 25, the South Korean Financial Intelligence Unit (FIU) sanctioned the exchange and imposed a 3 -month ban on deposits and withdrawals for brand new customers. The FIU previously said that the suspension was a response to the violations of the rules by the UPBIT, which prohibit the exchange from the transaction with non -registered virtual providers of asset services (VASPS).
In response to the sanction of the FIU, the parent company of Upbit, Dunamu, submitted a lawsuit against the FIU to remove the partial suspension arrangement. In addition, Dunamu called for an injunction to temporarily raise the suspension order.
On March 27, the local media news reported that the court had granted the interim decision, with the suspension order being postponed 30 days after a court hearing. This enables the pre -bit to operate latest customers while the legal dispute continues.
Upbit examinations led to a 3-month suspension command
The Upbit, founded in 2017, is the most important crypto exchange in South Korea. On October 10, the country's Financial Services (FSC) initiated an investigation by the Upbit for Potential Violations of the State's Anti-Monopoly Laws.
In addition to the violations of the monopoly, the exchange is suspected of being violated that your customer (KYC) knows. On November 15, the FIU identified not less than 500,000 to 600,000 potential KYC violations against the exchange. The supervisory authority discovered alleged violations and checked the renewal of the business license of the stock exchange.
In 2018, the South Korean supervisory authorities ended the anonymous crypto trade for its residents. With the brand new development, users must exist KYC procedure before they’ll exchange digital assets for crypto trading platforms resembling upbit.
Apart from these allegations, the FIU accused the preliminary of 45,000 transactions with non -registered foreign crypto exchanges. This violates the law of the country to report and use certain financial transaction information.
South Korea cracks on the exchange in overseas
On October 25, 2024, South Korea strengthened its supervision of cross-border crypto-asset transactions. The country's finance minister, Choi Sang-Mok, said the federal government would introduce a reporting mandate for firms that handle cross-border transactions with digital assets.
This goals to advertise preventive monitoring of crypto transactions, “for tax evasion and currency manipulation”.
In accordance with the foundations, the South Korean Google Play blocked the applications of 17 crypto exchanges on the request of the FIU. The FIU said it is usually working to limit exchange access using the Internet and Apple app Store.
