On November 2, 2025, Upbit, South Korea's largest crypto exchange, preemptively blocked transactions with Cambodia-based Huewn Exchange due to anti-money laundering concerns, acting faster than formal sanctions.
Upbit's proactive measures highlight the importance of compliance in avoiding potential financial crime, setting a significant precedent that affected 259 user accounts and millions in transactions.
Upbit Freezes 259 Accounts Amid Huewn Exchange Concerns
South Korea's Upbit, operated by Dunamu, has preemptively blocked transactions with Cambodia's Huewn Exchange over anti-money laundering concerns. This measure includes frozen assets and enhanced customer verification, reported two months before U.S. FinCEN designation.
Involved parties include Upbit, Huewn Exchange, and Korean law enforcement. Upbit reported suspicious activity in March 2025, leading to frozen assets for 259 users and closure of 205 accounts due to inadequate fund explanations. In response to these actions, an Upbit Spokesperson noted, "We were the fastest among domestic exchanges to block coin transfers to Huewn and are actively cooperating with the police investigation. We will do our best to minimize Korean investor losses and prevent related crime."
Potential Korean Regulatory Scrutiny Following Exchange Block
Transaction freezes affected 259 Upbit accounts connected to Huewn. This prompt action seeks to mitigate investor risk and related financial crimes. Upbit collaborates with authorities to secure South Korean investor interests.
Potential outcomes include heightened regulatory scrutiny across Korean exchanges. Insights suggest increased financial oversight and possible industry-wide compliance enhancements, aligning with past international actions against flagged entities.
Expert Perspectives on Upbit's Compliance Measures
The action mirrors past exchange responses to flagged international entities. Korean exchanges previously blocked wallets under regulatory pressure, showcasing a consistent approach to financial security.
Experts suggest Upbit's move aligns with global trends in crypto regulation, emphasizing the importance of compliance and investor protection. Analysis indicates future efforts may target similar threats, enhancing overall market security. Exploring global crypto compliance trends highlights these themes crucial to safeguarding investments.