Upbit Operator Clarifies: Regulatory Penalty Yet to be Determined, If Implemented Will Only Affect Asset Withdrawal for New Users

BlockBeats News, January 16th. Dunamu, the operator of the South Korean cryptocurrency exchange Upbit, responded formally to recent reports that the platform may face a business suspension penalty from the Financial Services Commission (FSS)’s Financial Intelligence Unit (FIU). Dunamu stated that the financial regulatory agency's penalty plan has not been finalized and that the issues raised will be clarified through the subsequent process, including a sanction review committee. At the same time, Dunamu emphasized that even if the penalty is eventually imposed, it will not affect the cryptocurrency trading services for existing and new users. The penalty measures will only restrict new users from withdrawing virtual assets from the Upbit platform for a specific period of time.

Earlier reports from the financial sector on the 16th indicated that the FIU of the Financial Services Commission issued a preliminary notice of sanctions to Upbit on the 9th of this month related to violations of the Specific Financial Transactions Act, with the core content being a business suspension. If this penalty is ultimately confirmed, Upbit will be restricted from conducting new customer-related business during the business suspension period (up to 6 months).