Upbit, one of the largest exchanges of Korean crypto in negotiation volume, faces a suspension of three months particles to violate industry regulations.
This development is the culmination of regulatory distributions on the platform after the decision of South Korea to open an antitrust survey against Upbit Exchange.
Upbit suspended in the midst of regulatory violations in South Korea
The South Korean authorities have sanctioned Dunamu Company, the owner of Upbit Exchange, for violation of regulations linked to the trading of virtual assets. Local media reported on Tuesday that violations included transactions with unregistered virtual asset companies.
According to statements, Upbit Exchange has also not managed to comply with the verification procedures for appropriate customers and has neglected to report suspicious transactions. Consequently, Upbit faces a partial suspension of commercial operations for three months.
More specifically, the authorities have prohibited new customers to transfer virtual assets between March 7 and June 6, 2025.
In addition, the exchange is subject to staff actions and a financial penalty. This evolution could harm the weight of upbit among the exchanges of Korean cryptography.
In an official announcement on his website, Upbit recognized violations. The exchange has also undertaken to take corrective measures to fully comply with legal regulations.
The company regretted the disadvantages it caused to users and has provided them with improvements to its transaction management. Upbit also said that he would monitor the system to avoid future offenses.
“… We sympathize deeply with the objective of the recent sanctions of the financial authorities, which aim to establish in a stable manner the anti-flange system and to strengthen the legal compliance system thanks to a strict discipline on virtual asset operators”, read an extract in the declaration.
Despite the sanctions, existing Upbit customers can continue to negotiate without restrictions. Although new users can exchange, they are temporarily restricted to transfer virtual assets, including deposits and withdrawals, to external wallets. Upbit also stressed that the imposed sanctions could be subject to changes through regulatory procedures.
South Korea tightens regulatory adhesion
Meanwhile, this regulatory repression is part of a broader effort of the authorities to apply more strict compliance measures in the cryptography sector of South Korea. Recent sanctions follow months of increased control over Upbit.
The South Korean government launched an antitrust investigation into Upbit five months ago. The authorities examined whether the exchange had engaged in monopolistic practices. In addition, barely a month ago, Upbit operations were temporarily suspended in the midst of allegations of 700,000 KYC violations (know your client).
It was a continuation of the concerns raised three months before. As Beincrypto reported, the South Korea financial regulator reported Upbit for 600,000 potential KYC violations, which caused new regulatory measures.
While Upbit is sailing in this regulatory examination period, South Korea tightens its regulatory grip. The country plans to introduce the second part of its cryptographic regulatory framework in H2 2025.
These adjustments arise as the country’s population includes a notable Number of participants in the cryptography market. More specifically, in November, 30% of the population of South Korea has invested in the cryPTO.
While Upbit now faces an in -depth examination, the company has also taken measures to comply with the evolution of regulations. Seven months ago, it became the first exchange in South Korea to publish public disclosure under the new law on the protection of users of virtual assets.
This decision was considered a proactive step in the alignment of the new regulatory framework of the country and the improvement of transparency within the cryptocurrency industry.
Despite these regulatory challenges, Upbit has historically maintained a strong position on the market. Two years ago, he surpassed world major exchanges such as Coinbase and OKX, leading to negotiation volumes among Korean exchanges while his American rivals had trouble. This domination reflects the important user base of the platform and influence in the cryptocurrency industry.
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