[Alpha Biz= Paul Lee] Dunamu, the operator of the cryptocurrency exchange Upbit, has been sanctioned by the Financial Intelligence Unit (FIU) for supporting cryptocurrency transactions with unreported overseas crypto businesses and failing to properly verify customers.
On Tuesday, the FIU issued a final notice of a three-month partial business suspension for Dunamu, effective from March 7 to June 6, for violating the Act on Reporting and Using Specific Financial Transaction Information (the Specific Financial Transactions Act).
During this suspension, new customers of Upbit will be restricted from transferring cryptocurrencies outside the platform. However, existing customers will still be able to trade without restrictions.
Additionally, the FIU imposed a reprimand on Dunamu CEO Lee Seok-woo and issued personnel sanctions, including the dismissal of the compliance officer and penalties on nine other employees.
The FIU explained that the sanctions stem from Dunamu's involvement in supporting 44,948 cryptocurrency transactions with 19 unreported overseas crypto businesses, which violates Article 8 of the Specific Financial Transactions Act. The law prohibits transactions with unregistered crypto operators.
The FIU also cited Dunamu's failure to meet customer verification obligations as another reason for the sanctions.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
