South Korea's leading crypto exchange Upbit is facing serious accusations of KYC violations as it undergoes license renewal.
Violation of KYC Standards
The FIU has identified over 500,000 cases of inadequate user verification, raising serious concerns about regulatory compliance. The issue became evident after users submitted blurred documents, which the exchange accepted.
Impact on Platform's Future
The FIU's focus is on the impact of these violations on the platform's future and the business license renewal process. Close monitoring is centered on potential threats related to money laundering.
Consequences and Additional Sanctions
Alongside Upbit issues, Radiant Capital (RDNT) faced trading suspension over security concerns. The South Korea Digital Asset Exchange Association decided to protect investors until the issues are resolved.
The KYC violations at Upbit and recent events surrounding RDNT represent increased regulatory scrutiny and signal potential risks to the industry.
