Upbit, South Korea’s largest crypto exchange, has come under scrutiny due to alleged Know Your Customer (KYC) violations. The country’s Financial Intelligence Unit (FIU) will hold a disciplinary hearing on January 21 to assess the exchange’s regulatory compliance.
Upbit’s KYC Violations Will Be Evaluated
FIU will hold an enforcement review meeting to evaluate the possibility of more than 500 thousand KYC violations detected during the field audit for virtual asset service provider (VASP) license renewal. This meeting is the first hearing to address issues identified during the VASP renewal audit.
Since August last year, investigations have been carried out on Upbit for KYC violations, led by the financial supervisory authority. During the license renewal process, the FIU found that unauthorized customer verification procedures numbered between 500,000 and 600,000.
South Korea’s Crypto Regulatory Standards
South Korea is moving towards creating a crypto-focused regulatory framework. The Financial Services Commission has initiated discussions on phase two crypto regulations, focusing specifically on stablecoins and customer protection.
The country’s efforts to combat rising crypto threats alongside those of the United States and Japan demonstrate its commitment to user security. Three countries have published a document warning against threats to crypto from North Korean hackers.
The FIU’s hearing on Upbit’s KYC violations is seen as a major turning point in South Korea’s regulatory landscape. Beyond the situation in South Korea, this meeting could also have an impact on global crypto regulations and laws.
This development can serve as an important example for platforms in the industry regarding crypto exchanges’ compliance with regulations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
