News that financial authorities have issued a pre-notice of a business suspension to Upbit, the country's largest cryptocurrency exchange, for violating the customer identification system (KYC) and failing to comply with anti-money laundering obligations, has led to a surge in stocks related to Bithumb, the second-largest exchange, during early trading on the 17th.
As of 9:15 a.m. on that day, T Scientific is trading at 1,255 won, up 211 won (20.21%) from the previous trading day. T Scientific is known to be responsible for Bithumb's personal information protection and security institutional sector. The largest shareholder of T Scientific, WIZIT, has also seen a 5.90% increase at the same time.
According to the financial sector, the Financial Services Commission's Financial Intelligence Unit (FIU) notified Upbit of sanctions related to violations of the Specific Financial Transaction Information Act on the 9th of this month. If the sanctions are confirmed, Upbit will be restricted from engaging in business related to new subscribers for the duration of the suspension (up to 6 months). However, the current sanctions have not yet been confirmed.
Interest in Bithumb has grown in light of the bad news for Upbit, leading to related stocks being viewed as beneficiaries. At the same time, Hanwha Investment & Securities and Woori Technology Investment, which hold equity in Dunamu, the operator of Upbit, fell by 1.21% and 0.65%, respectively.
A representative from Upbit noted, "Currently, the results of the sanctions are not confirmed," adding, "We will thoroughly explain through future procedures such as the sanction review committee."