A Korean cryptocurrency platform faces sanctions for violating money laundering regulations

One of South Korea’s largest cryptocurrency exchanges is being hit with potential sanctions for failing to comply with the country’s money laundering and know-your-customer (KYC) obligations.

Upbit was reportedly notified by the Financial Services Commission’s FIU last week of the sanctions.

If the decision is confirmed, the platform may be banned from dealing with new customers for up to 6 months.

The platform said in an official statement that the decision “will primarily restrict the ability of new clients to transfer virtual assets outside the exchange for a certain period of time.”

The platform will submit its opinion on the sanctions to Upbit to the FIU by the 20th day, and the FIU will then review the sanctions.

In 2022, the authorities in South Korea pledged to investigate the platforms carefully after the collapse of the company that issued the stable currency, Terra, calling on the regulatory authorities to supervise them carefully.

Terra was a company specialized in developing and providing stable currencies and financial technology. Founded in 2018, it was one of the largest and most famous cryptocurrency platforms in the world. However, in 2022, the company faced a major problem after the collapse of the “TerraUSD” currency, which led to the loss of a lot of money. Of its value and significant impacts on the global cryptocurrency market.