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Upbit, South Korea’s largest crypto exchange, is under scrutiny for allegedly approving a significant number of accounts without proper identification verification.<\/p>\n
Reports indicate that the Financial Services Commission (FSC) has identified between 500,000 and 600,000 violations related to know-your-customer (KYC) regulations during a routine license renewal review.<\/p>\n
According to a report<\/a> by Maeil Business Newspaper, the FSC discovered instances where user accounts were created using blurred identification documents, and other accounts were established without adequate verification processes.<\/p>\n Such breaches of KYC rules could lead to substantial fines, potentially reaching up to 100 million won (approximately $71,740). Additionally, these violations may complicate Upbit’s ongoing efforts to renew its operating license.<\/p>\n As the fifth-ranked exchange on CoinMarketCap, Upbit has demonstrated significant trading activity, processing over $7.7 billion in trades within the last 24 hours and exceeding $48.2 billion in total transactions for October alone, according to The Block.<\/p>\n The FSC’s chair, Kim Byung-hwan, has previously emphasized<\/a> the need for an investigation into the monopolistic practices within South Korea’s crypto exchange sector, which is largely dominated by Upbit.<\/p>\n The current investigation\u2019s implications may extend beyond financial penalties, potentially affecting the exchange’s market position and operational capabilities.<\/p>\n<\/p><\/div>\n