Crypto Exchange Upbit Faces Record $131.5 Billion Fine

South Korea’s largest cryptocurrency exchange, Upbit, could face a fine of up to 183 trillion won ($131.5 billion) for violations of “Know Your Customer” (KYC) verification requirements and regulatory rules.

During a comprehensive audit of Upbit operator Dunamu, conducted earlier this year, South Korea’s Financial Intelligence Unit (FIU) uncovered 9.57 million violations, most of which were related to the platform’s failure to verify client identities.

In February 2025, the FIU imposed initial sanctions, including a ban on deposits and withdrawals for new users, effectively limiting the inflow of new cryptocurrencies to the exchange. The agency also enforced a partial suspension of some Upbit services for three months and issued dismissals and reprimands to one executive and nine employees.

Despite these challenges, Upbit has maintained its reputation as a compliant company. It was also the first exchange to register under South Korea’s revised regulatory framework in 2021.

Currently, Upbit controls more than 80% of South Korea’s crypto market. It remains the most popular digital asset trading platform in the region, listing nearly all major cryptocurrencies. However, prolonged service suspensions or a massive fine could negatively impact local crypto traders and market liquidity.

See also: "Binance, OKX, Bybit, and Bitget led the crypto exchange market in Q2"

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