Upbit, South Korea's largest cryptocurrency exchange, might face sanctions for failing to comply with money laundering regulations. The Financial Information Analysis Institute (FIU), part of the Financial Services Commission, has reportedly notified Upbit of the potential sanctions. If imposed, these sanctions could bar Upbit from engaging in new customer business for up to six months, effectively preventing new customers from transferring virtual assets outside the exchange during this period. Upbit is expected to submit its opinions regarding the sanctions to the FIU by January 20, 2025, after which the FIU will review the matter. This development raises concerns in the wake of regulatory scrutiny following the collapse of the stablecoin issuer Terra, highlighting the urgency for regulators to supervise cryptocurrency exchanges more closely.

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