South Korean cryptocurrency exchange Upbit will soon halt services for unverified users.
On Oct. 2 the company officially announced a set of changes to its customer verification system in compliance with South Korea’s mandatory Anti-Money Laundering (AML) requirements.
According to the announcement, Upbit will start gradually limiting services for unverified users this week, restricting unverified customers from transacting more than 1 million Korean won ($850) at a time, effective Oct. 6.
“Once customer verification is completed, the 1 million won limit will be lifted; members who submit an order with less than 1 million won can proceed with customer verification at any time,” the firm said.
In a week after initial AML restrictions, Upbit plans to place more limits for unverified users. Effective Oct. 13, Upbit will stop trading services as well as deposits and withdrawals for existing customers who have not completed customer verification. “Once customer verification is completed, trading and deposit or withdrawal transactions will be resumed,” Upbit noted.
The announcement also states that new users who sign up after Oct. 6 will only be able to deposit and withdraw after completing verification. The exchange also advised processing verification through K Bank, Upbit’s official fiat on-ramp provider. “Withdrawal procedures to other banks will be notified later through a separate notice,” the announcement reads.
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Upbit is one of South Korea’s largest cryptocurrency exchanges alongside Bithumb, Coinone and Korbit, making up more than 80% of the local cryptocurrency market.
The firm’s new customer verification policies come in line with South Korea’s AML regulations requiring both local and foreign exchanges to provide real-name accounts through a local bank. The Financial Services Commission required crypto exchanges in South Korea to submit requests for an official operating license by Sept. 24. Some major exchanges including Binance subsequently halted KRW trading pairs and removed Korean language support from their platforms.