Upbit faces scrutiny as FIU finds 500,000-600,000 KYC compliance issues in license review.
FIU inspections reveal potential fines up to 100 million won per KYC violation at Upbit.
Extended review could impact Upbit’s license, raising industry-wide compliance concerns.
South Korea’s Financial Intelligence Unit (FIU) has uncovered numerous violations of customer verification procedures during its review of Upbit’s license renewal application.
Reports indicate that the FIU found between 500,000 and 600,000 potential cases of inadequate KYC compliance at Upbit, raising concerns about the exchange’s ability to renew its license.
FIU Investigation Reveals KYC Lapses
The FIU began on-site inspections of Upbit in late August. The authority discovered many instances where KYC protocols were not properly followed.
These protocols, mandated by the Special Financial Transaction Information Act, require virtual asset service providers to verify customer identities to prevent money laundering and terrorism financing. Among the issues cited, some accounts were reportedly opened with unclear identification documents, including blurred or incomplete names and r…
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