The country’s Financial Intelligence Unit (FIU) has temporarily restricted new customer registrations on the country’s largest crypto exchange, Upbit. The authorities have decided to impose a three-month ban on new accounts, deposits, and withdrawals of cryptocurrency for new customers, citing Upbit’s violations of South Korea’s policy prohibiting exchanges from facilitating transactions with unregistered crypto asset service providers (CASPs).

In a public statement, Upbit acknowledged that the FIU sanctions prohibit new customers from transferring crypto assets, in line with the findings of on-site inspections conducted by the agency in 2024. “Upbit has reviewed the necessary improvements made in response to this sanction from financial authorities and has completed the measures,” the firm said in a statement.

According to sources, the ban is due to growing concerns among regulators about the risks associated with money laundering and illegal transactions. South Korean authorities continue to implement tough regulations to ensure transparency in the crypto market, and this move is part of a broader strategy to improve the security of digital asset transactions.

While current Upbit users will be able to continue trading without restrictions, potential new customers are forced to wait for the ban to be lifted. The case highlights the increased scrutiny of cryptocurrency exchanges in the region and the potential for further regulation to come in the future.