(Feb 25): South Korea’s Financial Services Commission has suspended some businesses of Dunamu, the parent firm of the country’s largest cryptocurrency exchange Upbit, for three months over violation of certain rules.

Dunamu violated the rule that prohibits transactions with unreported virtual asset operators, along with customer verification obligations and the obligation to report suspicious transactions, the regulator said in a statement on Tuesday. Transfer of virtual assets by new customers will be restricted from March 7 to June 6, according to the statement.

“This sanctions measure partially restricts services for new subscribers,” Dunamu said in a statement. “Virtual asset transactions by existing users or new subscribers within Upbit will proceed normally but new subscribers will be restricted from transferring virtual assets to other exchanges (deposits/withdrawals) for a certain period of time,” it added.

Crypto trading is extremely popular in South Korea, with more than 7 million — almost 15% of the population —registered to trade on a crypto exchange.

Based in Seoul’s ritzy Gangnam district, Upbit claims the lion’s share of Korea’s crypto market and is also among the largest crypto exchanges globally. Cryptoasset trading on the platform has on average accounted for over 80% of Korean volumes, a level of dominance no other exchange has achieved in a major crypto hub.

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