South Korea’s financial regulatory authority is investigating Upbit, the largest cryptocurrency exchange in the country, for reportedly violating Know Your Customer {KYC} regulations in over 500,000 user accounts. This revelation came during a review of the exchange's license renewal. The Financial Services Commission {FSC} found multiple instances of improper verification, such as accounts being opened with blurred identification cards or without proper validation.
The violation of KYC rules, which is essential for preventing fraud and money laundering, could result in fines of up to 100 million won {approximately $71,740}. The investigation also raises concerns over the potential delay in Upbit’s license renewal. The FSC declined to provide further comments on the probe.
This situation has emerged amidst recent remarks by FSC Chair Kim Byung-hwan, who has expressed intentions to investigate the monopolistic structure of South Korea’s crypto exchanges, with Upbit playing a dominant role in the market.
Upbit processed more than $48.2 billion in transactions in October, ranking as the fifth-largest crypto exchange globally by trade volume.
The violation of KYC rules, which is essential for preventing fraud and money laundering, could result in fines of up to 100 million won {approximately $71,740}. The investigation also raises concerns over the potential delay in Upbit’s license renewal. The FSC declined to provide further comments on the probe.
This situation has emerged amidst recent remarks by FSC Chair Kim Byung-hwan, who has expressed intentions to investigate the monopolistic structure of South Korea’s crypto exchanges, with Upbit playing a dominant role in the market.
Upbit processed more than $48.2 billion in transactions in October, ranking as the fifth-largest crypto exchange globally by trade volume.
South Korea’s financial regulatory authority is investigating Upbit, the largest cryptocurrency exchange in the country, for reportedly violating Know Your Customer {KYC} regulations in over 500,000 user accounts. This revelation came during a review of the exchange's license renewal. The Financial Services Commission {FSC} found multiple instances of improper verification, such as accounts being opened with blurred identification cards or without proper validation.
The violation of KYC rules, which is essential for preventing fraud and money laundering, could result in fines of up to 100 million won {approximately $71,740}. The investigation also raises concerns over the potential delay in Upbit’s license renewal. The FSC declined to provide further comments on the probe.
This situation has emerged amidst recent remarks by FSC Chair Kim Byung-hwan, who has expressed intentions to investigate the monopolistic structure of South Korea’s crypto exchanges, with Upbit playing a dominant role in the market.
Upbit processed more than $48.2 billion in transactions in October, ranking as the fifth-largest crypto exchange globally by trade volume.
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