Crypto users in South Korea are facing a significant development as the Financial Intelligence Unit (FIU) of the country’s Financial Services Commission (FSC) has imposed a three-month suspension on key operations at Upbit, the nation’s leading cryptocurrency exchange. This action is aimed at ensuring compliance with regulations and safeguarding user security, sparking a ripple effect through the South Korean crypto landscape. The crux of the issue lies in regulatory noncompliance. Reports indicate that the FIU has identified several violations by Upbit, including inconsistencies in transaction freezes, shortcomings in user verification processes, and deficiencies in reporting suspicious activities. These issues are particularly concerning as they involve core aspects of user safety and regulatory protocols.