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Sanctions on Upbit: South Korea blocks trading for new customers

South Korea's Financial Intelligence Unit (FIU) has imposed a partial trading restriction on the Upbit crypto exchange.

By Mike Hesp
• 1 min read
Sanctions on Upbit: South Korea blocks trading for new customers

South Korea's Financial Intelligence Unit (FIU) has imposed a partial trading restriction on the Upbit crypto exchange. This comes from an official statement on the regulator's website.

According to the notice, new Upbit customers will be unable to make crypto deposits or withdrawals for the next three months. The FIU says this move is a response to violations of Korean regulations by Upbit. The exchange allegedly did business with unregistered crypto service providers (CASPs), which goes against local law.

On its own site Upbit responded that the restrictions were imposed following an on-site inspection by the FIU in 2024. The exchange also hinted that the measures could still change.

Back in January, Upbit came under scrutiny from the South Korean financial regulator for Know-Your-Customer (KYC) violations.

Upbit is known as one of the largest altcoin trading platforms. A listing on the exchange often leads to dramatic price surges for certain cryptocurrencies and tokens. The new-customer restrictions could therefore reduce capital inflows into this market in the short term.

According to data from Messari, Upbit's trading volume over the past 30 days has fallen by nearly 40%, aligning with the broader correction in the altcoin market since the start of the year.

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