South Korea investigates Upbit’s KYC violations amid market dominance concerns
The South Korean government has identified significant Know-Your-Customer (KYC) violations at Upbit, the largest cryptocurrency exchange in the country. The Financial Intelligence Unit (FIU) discovered between 500,000 and 600,000 potential violations during a routine business license renewal review. Issues include inadequate identification from users, with some accounts opened using illegible IDs, raising concerns about potential money laundering. Violations of KYC regulations could result in fines up to 100 million won (approximately $71,600) per instance, leading to speculation of up to $39 billion in total fines. The license renewal process for Upbit, which applied in August, may be delayed as the FIU evaluates the violations. This scrutiny follows the Financial Services Commission's intent to investigate Upbit's market dominance, noting its significant share of deposits at K Bank.
