South Korea's Financial Intelligence Unit has launched a review of Upbit's operations over alleged non-compliance with KYC requirements.
Investigation Circumstances
According to local media outlet Maeil Kyungjae, the regulator uncovered between 500,000 and 600,000 cases where the verification procedures might have been lacking. These involve blurred identification documents and improperly verified customer details.
Importance of the Law and Possible Consequences
The Special Financial Transaction Information Act mandates strict KYC protocols to prevent illicit activities. Violations might lead to substantial fines.
Upbit's Response and Next Steps
An Upbit representative declined to comment on the findings due to legal confidentiality. Upbit is enhancing its systems by migrating data to AWS in the US to improve security and compliance.
As the investigation proceeds, Upbit may face significant fines and license renewal complications. The company is taking steps to improve its systems in response to these challenges.
