Upbit Violates KYC Rules

Upbit, South Korea's largest cryptocurrency exchange, reportedly violated know-your-customer (KYC) regulations for over 500,000 identifications during a license renewal review by the country's financial watchdog.

According to Maeil Business Newspaper, the Financial Services Commission (FSC) found that Upbit inadequately implemented KYC procedures in at least 500,000 to 600,000 cases. Some examples included user accounts being opened with blurred identification cards and accounts created without proper verification.

Violating KYC rules may lead to fines of up to 100 million won ($71,740), and Upbit could face challenges during its license renewal.

The Block reached out to Upbit for comments, but an FSC official declined to provide further details about the investigation.

Ranked fifth on CoinMarketCap, Upbit processed over $7.7 billion in trade volume in the past 24 hours and more than $48.2 billion in October for crypto transactions, according to data from The Block.

FSC Chair Kim Byung-hwan mentioned an investigation into the monopolistic structure of South Korea's crypto exchanges, a market largely dominated by Upbit.