Leading crypto exchange Upbit is the first to apply for a license in the country before a September deadline that requires all crypto platforms to register with <a href="https://www.cryptoknowmics.com/news/samsung-will-participate-in-south-koreas-cbdc-trial/">South Korea’s</a> Financial Intelligence Unit (FIU) in order to operate in the country.
<h2><strong>Upbit is the First Exchange to Register with FIU</strong></h2>
South Korea’s Upbit crypto exchange becomes the first platform to <a href="https://n.news.naver.com/article/421/0005553799" target="_blank" rel="nofollow noopener">register</a> 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 <a href="https://www.kofiu.go.kr/kor/notification/notice_view.do" target="_blank" rel="nofollow noopener">Friday</a>. 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.
<h2>On a Hunt to Shut Down Unregistered Exchanges</h2>
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 <a href="https://www.cryptoknowmics.com/news/11-crypto-exchanges-to-wind-down-operations-in-south-korea/">illegal activities</a> 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.

Upbit is the First Crypto Exchange to Apply for License in South Korea

Upbit was the first to apply for a license in the country before a September deadline that requires all crypto platforms to register with South Korea’s FIU.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Upbit is the First Crypto Exchange to Apply for License in South Korea

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