South Korean cryptocurrency exchange Upbit was issued a partial business suspension by the country’s Financial Intelligence Unit (FIU), temporarily restricting new customer transactions.
South Korea’s FIU imposed a three-month restriction on crypto deposits and withdrawals for new Upbit customers, according to an FIU statement released on Feb. 25.
The announcement stated that the suspension was in response to Upbit’s violations of South Korean policies prohibiting exchanges from facilitating transactions with unregistered crypto asset service providers (CASPs).
Upbit addressed the FIU’s restrictions on its website, apologizing to its customers for any inconvenience.
Sanctions may be subject to change, Upbit says
In a public statement on its website, Upbit admitted that the latest sanctions by the FIU prohibit new customers from transferring crypto assets in accordance with findings from on-site inspections conducted by the authority in 2024.
“Upbit has reviewed the necessary improvements made in response to this sanction by the financial authorities and completed the measures,” the firm stated.
AdvertisementSave 10% on NGrave All Year! Use code COINTELEGRAPH at checkout for an exclusive discount. Secure your crypto today!
The firm emphasized that some “specific facts and circumstances” have not been taken into account in relation to the scope of sanctions, adding that some may be amended. Upbit stated:
“The sanctions imposed this time may be subject to change through procedures in accordance with relevant regulations, and if the effect of the relevant measures is suspended or terminated, new members will also be able to use Upbit’s services without restrictions.”
Upbit said it would provide further information if it reaches an agreement with authorities regarding potential changes to the sanctions.
Related: South Korea suspends downloads of DeepSeek over user data concerns
The exchange also stressed that existing customers can use all its services.
Upbit’s trading volumes down 70% since January
The news on Upbit’s three-month partial business suspension came soon after local reports indicated that the FIU notified Upbit in January of possible punitive measures in relation to alleged Know Your Customer (KYC ) violations.
South Korean regulators had previously reported on Upbit’s alleged KYC violations in November 2024, with the FIU identifying up to 600,000 breaches in its client identification procedures.
Founded in 2017, Upbit is one of the largest crypto exchanges in South Korea and worldwide, ranking as the 23rd top global exchange by trust score on CoinGecko.
Since January, Upbit’s daily trading volumes have dropped about 70%, amounting to $4.6 billion at the time of writing.
Magazine: How crypto laws are changing across the world in 2025