South Korea’s Largest Crypto Exchange Upbit Registers with KoFIU for AML

The regulators are coming, and Upbit is trying to play nice. The crypto exchange just reportedly filed with the Korean Financial Intelligence Unit. https://t.co/JV1nQVSmek

— Cointelegraph (@Cointelegraph) August 23, 2021

Upbit has partnered with K-bank for the purpose and will be implementing real-name verification of its customers, reports claim. Three other key crypto exchanges of the country have formed similar partnerships with banks to meet AML requirements. The Vice Chairman of the Financial Services Commission (FSC), Doh Gyu-sang, said on August 20 that one or two more crypto companies are likely to register before the end of this month. 

Any local crypto platform that fails to comply with the new rule will face an outright ban on operating in South Korea. Exchanges have to establish partnership with banks and report real-name bank accounts for all their customers in order to register with the FIU. This has proved to be a challenge for crypto exchanges because banks avoid  taking responsibility for any misconduct. 

As of today, there are 61 crypto trading platforms operating in South Korea and according to FSC, none of the VASPs that were consulted in July are ready to meet the AML requirements. 

Suggested Read: ​​South Korea to Penalize the Non-Compliant Crypto Companies