In order to remain compliant to South Korea’s Anti-Money Laundering (AML) requirements, crypto exchange Upbit has started limiting services for unverified users, the exchange said in a blog post on 2 October.
According to the announcements, starting this Wednesday the exchange will implement changes to its customer verification system, and place a maximum limit of 1 million won ($850) per trade for unverified users. New users, who have registered after 6 October, will be unable to deposit or withdraw any funds until the verification process has been completed. The exchange said in its post:
“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 change to the exchange’s process is in response to South Korea’s AML regulations, which require both local and foreign exchanges to provide real-name accounts through a local bank. Upbit has also advised its customers to complete their verification through its official fiat on-ramp provider, K Bank.
A week after the changes have been implemented, Upbit will further limit its services to unverified users, and completely stop trading services, deposits, and withdrawals for its existing customers that are yet to finish the verification process.
Upbit is not only one of the largest crypto exchange’s in South Korea, but is also expanding its reach in the Asian region. Back in August, the exchange became the first crypto-related company to receive four provisional licenses from Thailand’s SEC, enabling it to provide digital asset services in the country.