Upbit KYC Violations: South Korean Exchange Faces Potential Fallout

Upbit KYC Violations: Blurry IDs and Unverified Accounts

The nation’s financial watchdog found that Upbit, the biggest cryptocurrency exchange in South Korea, had broken know-your-customer (KYC) regulations for more than 500,000 identities while reviewing license renewals. The Financial Services Commission has determined that Upbit failed to appropriately conduct KYC procedures for at least 500,000 to 600,000 cases, according to a story published today by the local newspaper Maeil Business Newspaper. According to the report, several user accounts were made without the required verification, and one was opened using a blurry identification card.

FSC Targets Upbit for Alleged KYC Failures and Market Monopoly

Upbit may face difficulties renewing its license if KYC regulations are broken, and violations may result in fines of up to 100 million won ($71,740). The local media report stated that an FSC official refused to elaborate on the investigation. The monopolistic structure of South Korean cryptocurrency exchanges, which are controlled by Upbit, is something that FSC Chair Kim Byung-hwan promised to look into last month.

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