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<p>Upbit, South Korea's leading cryptocurrency exchange operated by Dunamu Inc., has temporarily halted identity verification using resident registration cards due to KYC/AML breaches, according to regulatory pressures.</p>
<p>The temporary suspension highlights compliance challenges in the crypto industry, affecting new customer transactions and emphasizing regulators' stringent oversight while leaving existing user operations mostly unaffected.</p>
<h2 id="upbit-halts-id-verification-amid-kyc-scrutiny">Upbit Halts ID Verification Amid KYC Scrutiny</h2>
<p>Upbit has <strong>temporarily suspended</strong> the use of <strong>resident registration cards</strong> for identity verification. The decision follows regulatory pressures due to <strong>large-scale KYC violations</strong> involving blurry ID images and improper address data. Lee Sirgoo (이석우), CEO of Dunamu / Upbit, noted, "Upbit is reviewing and taking action on the necessary improvements in response to the financial authorities’ recent sanctions."</p>
<p><strong>Upbit, operated by Dunamu Inc.</strong>, is under scrutiny by the Financial Intelligence Unit and the Financial Services Commission. These regulators have imposed a <a href="https://twitter.com/intent/tweet?utm_source=twitter&amp;text=Upbit+Partner+Firm+Faces+3+Month+Partial+Suspension+From+South+Korea+https%3A%2F%2Fwww.coindesk.com%2Fpolicy%2F2025%2F02%2F25%2Fupbit-partner-firm-faces-3-month-partial-suspension-from-south-korea+via+%40coindesk&amp;editorial=utm_content&amp;social=utm_medium&amp;organic=utm_term" rel="noopener noreferrer nofollow">three-month partial business suspension</a> on new customer crypto transfers.</p>
<h2 id="regulators-impose-3-month-partial-suspension">Regulators Impose 3-Month Partial Suspension</h2>
<p>The suspension primarily impacts <strong>new customer transactions</strong>, restricting their ability to transfer crypto. Existing users retain full trading and fiat capabilities, ensuring liquidity remains stable during the suspension period.</p>
<p>The temporary measures are aimed at rectifying compliance issues and mitigating money laundering risks. The regulatory focus on proper identification is intended to foster more <strong>robust compliance systems</strong> in alignment with legal obligations.</p>
<h2 id="regulatory-pressure-on-upbit-dates-back-to-2024">Regulatory Pressure on Upbit Dates Back to 2024</h2>
<p>In <strong>November 2024</strong>, Upbit faced <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-283mr-asic-sues-crypto-company-binance-australia-derivatives-for-consumer-protection-failures/#:~:text=ASIC%20alleges%20from%207%20July,of%20its%20Australian%20client%20base." rel="noopener noreferrer nofollow">similar warnings</a> from regulators for KYC violations, highlighting a recurring compliance issue. This current suspension underlines a pattern of enforcement escalation by South Korean financial authorities.</p>
<p>Experts suggest that, while primary trading remains unaffected, business model adjustments may be required to ensure future compliance. The market could see a temporary <strong>shift in user flows</strong> towards other exchanges during the mandated period.</p>
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    <td><em><strong>Disclaimer</strong>: This <a href="https://www.kanalcoin.com/" target="_blank" rel="noopener noreferrer nofollow"><strong>website</strong></a> provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.</em></td>
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Upbit Temporarily Suspends Identity Verification via Resident IDs

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