South Korea’s Financial Services Commission (FSC) has identified significant lapses in know-your-customer (KYC) compliance at Upbit, the country’s largest cryptocurrency exchange. The violations, disclosed during the exchange’s license renewal review, involve 500,000 to 600,000 cases where proper identification and verification processes were bypassed.
According to a local report, the FSC found that some accounts were opened using blurred identification cards, while others lacked adequate verification altogether. Violations of this nature could result in fines of up to 100 million won ($71,740) and complicate Upbit’s license renewal process.
Upbit ranked fifth globally on CoinMarketCap’s spot exchange list, processed over $7.7 billion in trading volume in the past 24 hours, and reported $48.2 billion in October alone. Despite its strong market position, Upbit now faces increased scrutiny.
FSC Chair Kim Byung-hwan has pledged to investigate the monopolistic structure of South Korea’s crypto market, which is largely dominated by Upbit. This latest KYC compliance issue may intensify regulatory oversight and challenge the exchange’s operations.
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