In line with an official announcement, leading South Korean bitcoin exchange, Upbit will halt withdrawals of its unverified users soon.
Recently, the firm publicly announced a series of changes to its buyer verification system in order to comply with South Korea’s anti-money laundering (AML) requirements.
According to the update, Upbit will begin gradually restricting providers for unverified users this week, preventing them from transferring more than 1 million Korean won ($850) at a time, starting Oct. 6.
Upbit intends to impose further constraints for unverified users every week following the implementation of early AML regulations. Upbit will stop buying and selling, as well as deposits and withdrawals, for current customers who haven’t completed buyer verification as of October 13th. “Trading and deposit or withdrawal transactions will resume after customer verification is completed,” Upbit famous.
According to the statement, new customers who sign up after October 6 will only be able to deposit and withdraw after completing verification. The exchange also recommended completing verification using Ok Bank, Upbit’s official fiat on-ramp provider. “Withdrawal procedures to other banks will be informed later through a separate notification,” the statement said.
Upbit, along with Bithumb, Coinone, and Korbit, is one of South Korea’s major cryptocurrency exchanges, accounting for more than 80% of the local cryptocurrency market.
The agency’s new buyer verification rules are in line with South Korea’s anti-money laundering regulations, which require both domestic and international exchanges to show real-name accounts through a local financial institution. Crypto exchanges in South Korea were needed to submit petitions for formal functioning licenses by September 24th, according to the Financial Services Commission. Following this, some major exchanges, including Binance, stopped KRW trading pairs and removed Korean language support from their systems.