South Korean regulators have suspended Upbit, a major crypto exchange, for three months. This action is because of compliance issues, like unregistered transactions and customer verification problems. The suspension runs from March 7 to June 6, 2025. New users can’t transfer virtual assets right now. Existing users can keep trading freely.
Regulators discovered Upbit’s links to unregistered virtual asset companies. They did not meet AML and KYC standards. Upbit is facing a suspension, financial penalties, and internal reviews that may impact its market position. Upbit has recognized the issue and will enhance its compliance efforts.
New customers can trade on Upbit, but they can’t move assets to or from external wallets due to the suspension. The exchange said restrictions could change after talks with regulators. This suspension comes after South Korean authorities increased their scrutiny and are pushing for stricter crypto regulations.
The government started an antitrust investigation into Upbit five months ago for possible monopolistic practices. Upbit was temporarily suspended for 700,000 KYC violations. This adds to earlier findings of 600,000 similar violations. Regulators took stronger actions against the exchange due to these issues.
South Korea will launch a new crypto regulatory framework in late 2025 to improve oversight and protect consumers in the digital asset industry. More than 30% of people are investing in crypto, so regulators are increasing controls.
Upbit is still a top player in South Korea’s crypto market, despite the challenges. It has outperformed global exchanges in trading volumes. Upbit is the first South Korean exchange to publicly disclose information under the Virtual Asset User Protection Act, showing its commitment to regulations. Upbit’s response to these penalties will be key for its future with regulators and its market standing.
