South Korea's Financial Intelligence Unit has uncovered large-scale customer identification violations at the cryptocurrency exchange Upbit.
Massive Customer Identification Violations Uncovered
According to the latest reports, South Korea's Financial Intelligence Unit (FIU) identified a large number of suspected customer identification violations during the business license review process for Upbit. FIU is thoroughly reviewing each case to detect potential illegal activities.
Review of Upbit’s License Renewal Applications
On November 14, the FIU conducted an on-site analysis of Upbit's license renewal applications, submitted since late August, discovering at least 500,000 cases where KYC procedures were not properly followed.
Multiple Issues with User Accounts
Accounts were discovered with unreadable names and registration numbers on IDs, potentially facilitating money laundering or other illicit activities. An Upbit official noted that, according to law, data processed by the FIU cannot be shared even within the company.
The process of Upbit's license renewal continues. The final decision may significantly impact the exchange's operations, given the up to 600,000 suspicious cases currently under review.
