South Korea sanctions Upbit with a 3-month ban on new clients

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.

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.

The exchange also stressed that existing customers can use all its services.

This is a developing story; further information will be added as it becomes available.

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