CoinVoice recently learned that the Financial Information Analysis Unit (FIU) of the Financial Services Commission of South Korea found at least 500,000 suspected violations of customer identity confirmation (KYC) obligations during the business renewal review of the virtual asset exchange Upbit. The FIU is reviewing the illegality of these cases one by one.
The violations found in the review include some accounts registered with obscure identification documents, which may be used for money laundering or other illegal activities. According to the (Specified Financial Transaction Information Act), virtual asset exchanges must renew their licenses every three years, and may be fined up to 100 million won per case for violations of customer identity confirmation obligations. FIU's review of Upbit is still ongoing.
KYC is a necessary procedure under the requirements of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). The exchange needs to ensure that users submit valid identification and complete identity verification. [Original link]
