Upbit Regulations: What You Need to Know About Crypto Rules in South Korea

When you trade on Upbit, South Korea’s largest crypto exchange, regulated by the Financial Services Commission (FSC) and supervised by the Korea Financial Intelligence Unit (KFIU). Also known as Dunamu, it’s the only major exchange in the country that follows strict local laws—making it a key player in how crypto operates in Asia. Unlike exchanges in the U.S. or Europe, Upbit doesn’t just follow best practices—it’s legally required to follow rules set by the South Korean government. That means user verification, anti-money laundering checks, and even how you withdraw funds are all controlled by national policy.

These rules aren’t optional. If you’re using Upbit, you’re subject to KFTC crypto, the Korea Financial Intelligence Unit’s oversight of digital asset transactions to prevent fraud and illegal funding. All users must pass real-name verification. You can’t trade anonymously. You can’t send crypto to unregistered wallets. And if you make a profit, you owe taxes—no exceptions. The government doesn’t ban crypto, but it makes sure every trade leaves a paper trail. This is why Upbit doesn’t offer margin trading, derivatives, or anonymous staking like Binance or OKX might elsewhere.

Because of these rules, Upbit is one of the few exchanges that actually works smoothly for Korean residents. But it’s also why you’ll see delays in withdrawals, strict limits on fiat deposits, and no access to certain tokens. The government blocks tokens it considers too risky or unregulated—like many meme coins or low-liquidity projects. That’s why you won’t find random tokens like TROG, NDQ, or VALI on Upbit, even if they’re listed elsewhere. The platform follows the law, not the hype.

These regulations also explain why so many posts here warn about fake exchanges like INRTOKEN or Purple Bridge. In South Korea, unlicensed platforms are shut down fast. Upbit’s compliance isn’t a feature—it’s the only reason it still exists. If you’re trading crypto in Korea, you’re not just choosing a platform. You’re choosing to play by rules that protect you, even if they feel restrictive. That’s the trade-off: less freedom, more safety.

Below, you’ll find real-world examples of how these rules affect users—from tax reporting to avoiding scams that try to bypass KFTC controls. Some posts show you how to stay compliant. Others warn you what happens when you ignore the system. Whether you’re holding LINK, using a DEX like DPEX.io, or chasing an airdrop, Upbit’s regulations are the invisible hand shaping your choices. Know them. Respect them. Or risk losing everything.