South Korean cryptocurrency exchange Upbit will soon stop serving unconfirmed users.
On Saturday, the company officially announced a number of changes to its customer verification system to meet South Korea’s mandatory anti-money laundering (AML) requirements.
According to the announcement, Upbit will gradually start restricting services to unverified users this week, preventing unconfirmed customers from making transactions worth more than 1 million won ($ 850) at once from Wednesday 6 October.
“After you complete the customer confirmation, the limit of one million will be increased; Members who have placed an order for less than one million won can continue to confirm the customer at any time. ”
One week after the first restrictions on money laundering, Upbit plans to impose additional restrictions on unverified users. From 13 October, Upbit will stop offering trading services, as well as deposits and withdrawals for existing customers who have not completed customer confirmation. “Once the client confirmation is complete, trading and deposits or withdrawals will continue,” Upbit notes.
The announcement also states that new users who register after Wednesday will only be able to deposit and withdraw money after the verification has been completed. Oslo Børs also recommended checking the treatment through K Bank, the official provider of Upbit. “The procedure for withdrawing funds from other banks will be announced later in a separate announcement,” it was reported.
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Upbit is one of the largest cryptocurrency exchanges in South Korea, together with Bithumb, Coinone and Korbit, and accounts for over 80% of the local cryptocurrency market.
The company’s new customer confirmation policy is in line with South Korea’s anti – money laundering laws, which require local and foreign exchanges to open real-name accounts through a local bank. The Financial Services Commission has asked cryptocurrency exchanges in South Korea to apply for an official operating license by September 24. Several major stock exchanges, including Binance, later dropped support for KRW trading pairs and removed support for the Korean language from their platforms.