Upbit Regulations: What You Need to Know About Crypto Exchange Rules in 2025

When you trade on Upbit, a major cryptocurrency exchange based in South Korea that handles billions in daily trades. Also known as Dunamu's crypto platform, it's one of the most used exchanges in Asia—but it only operates because of strict government rules. Upbit doesn’t get to set its own policies. It follows rules forced on it by the Korea Financial Intelligence Unit (KFIU), the agency that enforces anti-money laundering laws for crypto in South Korea, and the Korea Financial Services Commission (KFTC), the main regulator that requires exchanges to register, verify users, and report suspicious activity. These aren’t suggestions. They’re legal requirements. Skip them, and you risk losing access to your funds—or worse, getting caught in a crackdown.

Upbit’s rules mirror South Korea’s broader crypto laws. All exchanges must collect real names, IDs, and bank account links for every user. No anonymous trading. No offshore wallets. No unverified deposits. That’s why you can’t just sign up with a fake name and start trading. The system is built to stop fraud, but it also makes it harder to move money quickly. If you’ve ever waited days to withdraw from Upbit, it’s not a glitch—it’s compliance. The government also forces exchanges to keep 90% of user funds in cold storage and undergo regular audits. That’s why Upbit hasn’t had a major hack since 2019. It’s not luck. It’s regulation.

These rules don’t just affect Upbit. They shape how all Korean crypto users behave. People use P2P platforms to bypass deposit limits. Traders move to decentralized exchanges to avoid KYC. And many keep their assets on foreign platforms like Binance—despite the legal gray area. But if you’re using Upbit, you’re playing by Korea’s rules. That means your trading history is tracked, your withdrawals are monitored, and your identity is tied to every transaction. It’s not perfect, but it’s the reality. And if you’re trading crypto in Asia, you need to understand this system.

Below, you’ll find real case studies and breakdowns of how exchange rules impact users—from how Taiwan’s FSC forces platforms to segregate assets, to how Russia bans non-compliant exchanges, to how Mexico taxes your crypto gains. These aren’t abstract laws. They’re the invisible hand that controls where your money goes, how fast it moves, and whether you can even access it. Upbit regulations are just one piece of a global puzzle. And if you’re serious about crypto, you need to see the whole picture.