South Korean regulators have imposed a three-month suspension on Upbit, one of the country’s largest cryptocurrency exchanges, due to violations related to compliance and customer verification. The decision, effective March 7th, 2025, will limit new user access to assets while existing users can continue trading without restrictions. The suspension stems from Upbit’s links to unregistered virtual asset companies, non-compliance with Anti Money Laundering (AML) and Know Your Customer (KYC) standards, leading to financial penalties and internal review processes. Upbit faces a significant market disruption as the government emphasizes stricter crypto regulations following several compliance issues. 2025 will see South Korea launch its new regulatory framework for crypto, aiming to strengthen oversight and consumer protection in the digital asset landscape. Upbit’s suspension is part of a broader effort to enhance regulatory scrutiny in the country. The exchange has acknowledged these concerns and pledged to improve its compliance efforts moving forward. Notably, this action follows a previous 700,000 KYC violations suspension imposed on the exchange five months ago, adding to earlier findings of 600,000 similar violations. The impact of these sanctions will significantly shape Upbit’s standing in the South Korean crypto market and its future interactions with regulators.