South Korean crypto exchange Upbit is to limit services for unverified users in a bid to step compliance efforts in line with new crypto regulations. The crypto exchange revealed that it would begin by limiting withdrawals from unverified users from this week in a move that will see unverified customers restricted to maximum withdrawals of no more than $850 per transaction.
Upbit will remove restrictions once a user is verified.
The following week after introducing the withdrawal limits, the South Korean crypto exchange said it would go further in restricting trading services to verified users only, including all deposits and withdrawals, effective October 13. According to Upbit, these limits will be removed for users on successful verification, which can commence at any time. “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 exchange said. “Once customer verification is completed, trading and deposit or withdrawal transactions will be resumed,” Upbit noted.
Korean exchange accounts for some 80% of the local market for digital currency transactions.
The new policy by the exchange means users signing up after October 6 are required to complete the verification process in order to deposit or withdraw, with users being directed to its partner bank K Bank for onboarding. The crypto exchange said further announcements around withdrawals should be expected in the coming days. “Withdrawal procedures to other banks will be notified later through a separate notice.” The development is significant for South Korea’s digital currency market, with Upbit accounting for some 80% of the local market for cryptocurrency transactions.