South Korea Regulators Clamp Down on Upbit, 700K KYC Violations Found

Upbit may face up to six months of business suspension for KYC and AML violations. FIU found 700,000 KYC lapses during license renewal inspections. Sanctions could impact Upbit’s dominance in Korea’s crypto market. South Korea’s leading cryptocurrency exchange, Upbit, is facing potential sanctions for alleged anti-money laundering (AML) and Know Your Customer (KYC) violations. According to reports, the Financial Intelligence Unit (FIU) has flagged the platform potentially leading to a six-month suspension for onboarding new customers. Existing users, however, will retain access to trading services. KYC Violations Trigger Regulatory Action The FIU reportedly uncovered 700,000 instances of inadequate KYC procedures during Upbit’s license renewal inspection last year. These instances include suspected transactions with unregistered foreign exchanges. Upbit claims these were oversights, citing the difficulty of distinguishing unregistered offshore platforms on the blockchain. This action reflects the Financial Services Commission’s increased focus on enforcing the Specific Financial Transaction Information Act. Motivated by the July 2024 Virtual Asset … The post South Korea Regulators Clamp Down on Upbit, 700K KYC Violations Found appeared first on Coin Edition .