According to reports, Upbit, a major South Korean cryptocurrency company, has submitted a business report to the Korean Financial Intelligence Unit.
Upbit has reported its digital assets business to the FIU. This is South Korea's top financial regulator and operates under the Financial Services Commission (FSC). Upbit's operator, Dunamu, announced the news on Friday, The Korea Economic Daily reported.
Upbit is a major cryptocurrency exchange in South Korea, along with Coinone, Korbit and Bithumb. It is believed to account for more than 80% local cryptocurrency market. Doh Gyu–sang, vice chairman of the FSC, stated that the authority would accept additional reports from popular South Korean exchanges within the next few days. The official said that the FSC expects one or two more crypto exchanges to have filed reports by the end of August.
Cointelegraph did not receive a response from the FSC to our request for comment.
South Korean authorities have required all local crypto trading platforms to register their businesses as digital asset service providers before Sept. 24 or face an outright ban on operations in the country. Exchanges must register with the FIU by establishing a banking partner and reporting real-name bank accounts on behalf of all clients. As previously reported, Upbit has set up real-name account verification with local internet bank K Bank.
South Korean financial authorities are focusing more attention on larger crypto exchanges when it comes to registration. However, smaller platforms for trading crypto currencies may be having trouble complying with local regulations. A number of smaller South Korean crypto exchanges such as Bitsonic and CPDAX announced temporary suspensions or entire service termination over the past few months.
In August, a representative of FSC told Cointelegraph that they were not trying to shut down smaller exchanges, but to stop the use of fraudulent collective accounts or borrowed-name accounts on the platforms.