South Korean crypto exchange Upbit is all set to verify its 8.3 million users.

According to the Korea Herald report, Upbit, South Korea’s first cryptocurrency exchange to receive a green light from regulators, is gearing up to verify its massive number of users to fulfill the next important duty under the anti-money laundry act. Industry experts believe Upbit’s user verification could take as long as three months due to its massive user base of 8.3 million and a public ID verification system operated by the Ministry of the Interior and Safety. 

Upbit became the first cryptocurrency exchange officially registered with the financial authorities.

In an announcement, the crypto exchange said that users would not process transactions without carrying out the verification once the user verification begins. Upbit will have to carry out user verification as soon as it receives official documents from the financial regulators, but the Financial Intelligence Unit, which supervises the virtual asset industry, has been delaying its action until the largest crypto exchange gets ready for it to avoid any possible market uncertainty. 

South Korea’s overhaul of crypto regulations put many crypto exchanges out of business. 

Upbit will have to carry out user verification as soon as it receives official documents from the financial regulators, but the Financial Intelligence Unit, which supervises the virtual asset industry, has been delaying its action until the largest crypto exchange gets ready for it to avoid any possible market uncertainty. User verification is an important step for the virtual asset industry and regulators alike because the ID verification sets the ground for the crypto industry’s upcoming challenges, such as setting up a system for global anti-money laundering standards called the “travel rule” and capital gains taxes from 2022.