Upbit reportedly first crypto exchange to file with Korean regulators

Regulation

Major South Korean cryptocurrency company Upbit has reportedly submitted a business report with the Korean Financial Intelligence Unit (FIU).

Upbit reported its virtual asset business to the FIU, which operates under South Korea’s top financial regulator, the Financial Services Commission (FSC). Upbit’s operator Dunamu announced the news on Friday, The Korea Economic Daily reported.

Upbit is one of South Korea’s largest cryptocurrency exchanges alongside Bithumb, Coinone and Korbit, and reportedly makes up more than 80% of the local cryptocurrency market. FSC vice chairman Doh Gyu-sang said that the authority is ready to accept more reports from the most popular South Korean exchanges in the near future. The official said that the FSC expects one or two more crypto exchanges to file reports by the end of August.

The FSC did not immediately respond to Cointelegraph’s request for comment.

South Korean authorities have required all local crypto trading platforms to register their businesses as virtual asset service providers before Sept. 24, or face an outright ban on operations in the country. In order to register with the FIU, exchanges need to establish a banking partner and report real-name bank accounts for all their clients. As previously reported, Upbit has set up real-name account verification with local internet bank K Bank.

Related: Binance halts KRW pairs amid tightening crypto exchange regulations in Korea

As South Korean financial authorities continue focusing on bigger crypto exchanges in terms of registration, smaller crypto trading platforms are apparently struggling to comply with local requirements. A number of smaller South Korean crypto exchanges like Bitsonic and CPDAX announced temporary suspensions or entire service termination over the past few months.

An FSC representative told Cointelegraph in early August that the authority was not looking to close down smaller exchanges but rather was looking to freeze the use of fraudulent collective accounts, or borrowed-name accounts on the platforms.

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