South Korea’s Upbit Faces Regulatory Scrutiny Over AML Violations

Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, is challenging penalties imposed by the Financial Intelligence Unit (FIU). The regulator has flagged anti-money laundering violations across major platforms including Bithumb, Coinone, Korbit, and GOPAX as it intensifies oversight of the digital asset sector.

Upbit received a 35.2 billion won ($25 million) fine and a three-month ban on new customer onboarding after the FIU identified 5.3 million instances of inadequate due diligence and 15 unreported suspicious transactions. Dunamu maintains that past FIU sanctions have been overturned in court, citing the precedent of Hanbitco's successful appeal against a 2 billion won fine in 2022.

The exchange has implemented enhanced investor protection measures while conducting an internal review of the FIU's findings. 'We remain committed to providing SAFE trading,' a Dunamu spokesperson stated, signaling the company's intent to potentially contest the penalties through legal channels.