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South Korea temporarily lifts Upbit’s 3-month ban on serving new clients

A South Korean court temporarily lifted the partial business suspension on crypto exchange Upbit that had prohibited the trading platform from servicing new clients for three months. 

On Feb. 25, South Korea’s Financial Intelligence Unit (FIU) sanctioned the exchange, imposing a three-month ban on deposits and withdrawals for new clients. The FIU previously said the suspension was in response to Upbit’s violations of policies that prohibit exchanges from transacting with unregistered virtual asset service providers (VASPs). 

In response to the FIU’s sanction, Upbit’s parent company, Dunamu, filed a lawsuit against the FIU, seeking to overturn the partial suspension order. In addition, Dunamu requested an injunction to temporarily lift the suspension order. 

On March 27, local media Newsis reported that the court granted the injunction, moving the suspension order 30 days after a court judgment is reached. This allows Upbit to service new clients while the legal battle continues. 

Upbit investigations led to a 3-month suspension order

Founded in 2017, Upbit is South Korea’s largest crypto exchange. On Oct. 10, the country’s Financial Services Commission (FSC) initiated an investigation into Upbit for potential breaches of the country’s anti-monopoly laws. 

In addition to anti-monopoly breaches, the exchange is suspected of violating Know Your Customer (KYC) rules. On Nov. 15, the FIU identified up at least 500,000 to 600,000 potential KYC violations of the exchange. The regulator spotted alleged breaches while reviewing the exchange’s business license renewal. 

In 2018, South Korean regulators ended anonymous crypto trading for its citizens. With the new development, users must pass KYC procedures before being allowed to trade digital assets on crypto trading platforms like Upbit. 

Apart from these allegations, the FIU accused Upbit of facilitating 45,000 transactions with unregistered foreign crypto exchanges. This violates the country’s Act on Reporting and Using Specified Financial Transaction Information.

Related: South Korea plans to regulate cross-border stablecoin transactions

South Korea cracks down on overseas exchanges

On Oct. 25, 2024, South Korea strengthened its oversight of cross-border crypto asset transactions. The country’s finance minister, Choi Sang-Mok, said the government will introduce a reporting mandate for businesses that handle cross-border transactions with digital assets.

This aims to promote preemptive monitoring of crypto transactions “used for tax evasion and currency manipulation.”

In line with the rules, South Korea’s Google Play blocked the applications of 17 crypto exchanges at the request of the FIU. The FIU said it’s also working to restrict exchange access using the internet and Apple’s App Store. 

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express

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One year since Durov’s arrest: What’s happened and what’s ahead?

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One year since Durov’s arrest: What’s happened and what’s ahead?

One year since Durov’s arrest: What’s happened and what’s ahead?

Telegram CEO Pavel Durov was arrested one year ago and has since then been required to stay in France while under investigation.

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The future of crypto in the Asia-Middle East corridor lies in permissioned scale

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The future of crypto in the Asia-Middle East corridor lies in permissioned scale

The future of crypto in the Asia-Middle East corridor lies in permissioned scale

As Asia and the Middle East lead crypto adoption, success no longer comes from avoiding regulation, but mastering compliance to unlock true scale.

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Laws to largely abolish use of short prison sentences to be introduced within weeks

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Laws to largely abolish use of short prison sentences to be introduced within weeks

New laws to reduce the use of short prison sentences and toughen up community punishments are expected to be introduced within weeks.

Ministers are expected to introduce the new legislation to the Commons after the summer recess.

The changes will abolish most short-term prison sentences and introduce an earned release scheme, based on a model used in Texas, where prisoners who demonstrate good behaviour can be freed earlier – while those who disobey prison rules are detained for longer.

This will include some prisoners jailed for violent offences, although those convicted of the most dangerous crimes and for terrorism will be excluded.

Shabana Mahmood (left) was said to be impressed by the system in place in Texan prisons. Pic: PA
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Shabana Mahmood (left) was said to be impressed by the system in place in Texan prisons. Pic: PA

The new bill will introduce many of the changes recommended by the independent sentencing review, carried out by former Conservative justice minister David Gauke earlier this year. It represents one of the largest overhauls of sentencing in a generation and marks a cornerstone of the government’s effort to reduce the size of the prison population in England and Wales.

As well as reducing the use of short custodial sentences, the changes will also toughen up community sentences, introducing a wider range of punishments for those serving time outside of prison. This could include bans on going to stadiums to watch sports or music events, as well as restrictions on visiting pubs, and the wider use of drug testing.

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Becky Johnson speaks with Daniel, a former convict, who was released early after prisons reached capacity.

Other punishments could include driving and travel bans, as well as restriction zones – confining them to certain areas. Some of these can already be imposed for certain crimes, but the new laws will mean that these could be handed down by a judge for any offence.

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Under the legislation, which it is understood will be introduced in September, prison sentences of 12 months or less will be scrapped, except for in exceptional circumstances such as domestic abuse cases. Meanwhile, the length of suspended sentences – where an offender is not sent to prison immediately unless they commit a further crime – will be extended from two years to three.

The justice secretary is believed to have been inspired by the earned release scheme during a visit to the States, where she learned about the model being used in Texas to cut crime and bring their prison population under control.

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England is on course to run out of prison places for adult men by November, the Justice Secretary has warned.

Shabana Mahmood said that criminals who break the rules “must be punished” and that those serving their sentences in the community “must have their freedom restricted there, too”.

She added: “Rightly, the public expect the government to do everything in its power to keep Britain safe, and that’s what we’re doing.”

A spokesperson for the Ministry of Justice added: “This government inherited a prison system days away from collapse.

“That is why we are building 14,000 more prison places, with 2,500 already delivered, but we know we can’t build our way out of this crisis.

“Without further action, we will run out of prison places in months, courts would halt trials and the police [would] cancel arrests. That is why we are overhauling sentencing to make sure we always have the prison places needed to keep the country safe.”

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