Upbit, South Korea’s first cryptocurrency exchange to receive regulatory approval, is preparing to verify its massive user base in order to fulfill the next important duty under the anti-money laundering act. Due to Upbit’s massive user base of 8.3 million and a public ID verification system operated by the Ministry of the Interior and Safety, industry experts believe user verification could take up to three months.
Upbit is the first cryptocurrency exchange that has been officially registered with financial authorities.
In an announcement, the cryptocurrency exchange announced that users would not process transactions without verification once user verification begins. Upbit is required to perform user verification as soon as it receives official documents from the financial regulators, but the Financial Intelligence Unit. , which oversees the virtual asset industry, has delayed its actions until the largest crypto exchange is ready to avoid potential market uncertainties.
South Korea’s overhaul of crypto regulations has put many crypto exchanges out of business.
Upbit is required to conduct user verification as soon as it receives official documents from financial regulators, but the Financial Intelligence Unit, which oversees the virtual asset industry, has delayed its actions until the largest cryptocurrency exchange is up and running. possible market uncertainties. User verification is an important step for both the virtual asset industry and regulators as identity verification lays the groundwork for the crypto industry’s upcoming challenges, such as creating a system for global anti-laundering standards of money, which as ” Travel Rule “and taxes on capital gains from 2022.