Upbit is suspected of KYC violations

The Financial Intelligence Unit (FIU) of South Korea's Financial Services Commission has identified at least 500,000 to 600,000 potential violations of KYC procedures on the Upbit platform.

Issues with blurred identifiers

In South Korea, cryptocurrency exchanges, particularly Virtual Asset Service Providers (VASPs), are required to adhere to strict KYC regulations.

According to the report, cases were identified on Upbit where customers were allowed to open accounts using documents with blurred data (names, registration numbers). Such identifiers made it difficult for regulators to properly verify clients.

Potential consequences

Due to these violations, Upbit could face fines of 100 million Korean won for each instance of non-compliance. Additionally, the exchange may encounter issues with renewing its business license.

Preliminary investigations

Upbit is one of the largest cryptocurrency exchanges in the world, processing transactions worth $2.2 billion daily.

The FSC’s investigation into KYC violations occurred just a month after the regulator announced in October its examination of Upbit for potential antitrust law breaches.