Korean crypto exchange Upbit to stop withdrawals for unverified users

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The South Korean cryptocurrency exchange Upbit will soon be shutting down services for unverified users.

On Saturday, the company officially announced a set of changes to its customer verification system in line with South Korea’s mandatory anti-money laundering (AML) requirements.

According to the announcement, Upbit will begin phasing out services for unverified users this week, preventing unverified customers from processing more than one million Korean won ($ 850) at a time, effective Wednesday, October 6.

Once the customer’s verification is completed, the limit of 1 million won will be lifted; Members who submit an order for less than one million won can perform customer verification at any time, the company said.

A week after the initial AML restrictions, Upbit plans to impose more limits on unverified users. As of October 13, Upbit will stop trading services as well as deposits and withdrawals for existing clients who have not completed client verification. Once the client verification is complete, trading and deposit or withdrawal transactions will resume, Upbit noted.

The announcement also states that new users who sign up after Wednesday will only be able to deposit and withdraw after completing verification. The exchange also advised processing the verification through K Bank, the official provider of Upbits’ fiat ramp. Withdrawal procedures to other banks will be notified later through a separate notice, the announcement said.

Related: South Korean Crypto Tax Delay Thwarted

Upbit is one of South Korea’s largest cryptocurrency exchanges alongside Bithumb, Coinone, and Korbit, accounting for over 80% of the local cryptocurrency market.

The company’s new client verification policies comply with South Korea’s AML regulations requiring local and foreign exchanges to provide real-name accounts through a local bank. The Financial Services Commission has asked crypto exchanges in South Korea to submit official operating license applications by September 24. Some major exchanges, including Binance, subsequently discontinued KRW trading pairs and removed Korean language support from their platforms.

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