Upbit, the largest cryptocurrency exchange in South Korea, reportedly violated know-your-customer (KYC) rules for over 500,000 identifications, as discovered by the country’s financial watchdog during its license renewal review.
Maeil Business Newspaper, a local newspaper, reported today that the Financial Services Commission has found that Upbit failed to properly implement KYC procedures for at least 500,000 to 600,000 cases. For example, a user account was opened with a blurred identification card, and some accounts were created without proper verification, the report said.
Violations of KYC rules can result in fines of up to 100 million won ($71,740), and Upbit could also encounter challenges with its license renewal.
The Block reached out to Upbit for comment. According to the local media report, an official from the FSC declined to provide further details about the probe.
Upbit, ranked fifth on CoinMarketCap’s top spot exchanges, handled over $7.7 billion in trade volume in the past 24 hours. In October, it processed more than $48.2 billion in crypto transactions, according to data from The Block.
FSC Chair Kim Byung-hwan said last month that he would investigate the monopolistic structure of South Korean crypto exchanges, a market dominated by Upbit.
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