Upbit is the First Crypto Exchange to Apply for License in South Korea
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Upbit is the First Exchange to Register with FIU
South Korea’s Upbit crypto exchange becomes the first platform to register with the Financial Intelligence Unit (FIU) in accordance with the Special Act on its website.
Per the Special Act, cryptocurrency businesses must meet requirements, including real-name verification deposit and withdrawal account issuance confirmation and an Information Security Management System (ISMS) certification.
Crypto exchanges failing to register on the required Sept 24 deadline will have their website blocked, according to a notice posted Friday. Registration includes several requirements, including setting up partnerships with banks to obtain accounts for real-name verification.
Once a report has been submitted with the FIU, the authorities will review the reporting requirements. Within a maximum of 3 months, the FIU notifies whether a firm is accepted or not.
Applicable not only for domestic crypto exchanges but the Financial Intelligence Unit has also called for the foreign exchanges to register with if they want to continue servicing their South Korean customers.
Earlier this month, Major cryptocurrency exchange Binance discontinued crypto products and services in South Korea when it stopped offering trading pairs and payment options with the South Korean won following regulatory scrutiny.
On a Hunt to Shut Down Unregistered Exchanges
Currently, there are over 61 cryptocurrency exchanges operating in South Korea with 20 companies having obtained ISMS and 22 companies subjected to ISMS screening.
Reportedly, the financial services regulator is planning to shut down about 11 cryptocurrency exchanges for engaging in illegal activities and using fraudulent collective bank accounts. Furthermore, the regulator is also planning to deny these unnamed exchanges to serve the South Korean market in the future.