South Korea’s cryptocurrency exchange Upbit is under scrutiny for potentially breaching Know Your Customer (KYC) regulations, with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) identifying 500,000 to 600,000 violations during a review of Upbit’s business license renewal. Reportedly, Upbit accepted blurred IDs from users, which impeded proper identification and verification. These violations could result in significant penalties, estimated at 100 million Korean won ($71,500) per offense, along with complications regarding Upbit's license renewal. This investigation comes shortly after a separate inquiry by the FSC regarding monopoly concerns tied to Upbit's relationships with financial institutions like K-Bank. Founded in 2017, Upbit is a leading global crypto exchange, handling trades worth approximately $2.2 billion daily, marking it as a major player in the South Korean market amid strict regulatory oversight on crypto activities since 2018.

Source 🔗