South Korean cryptocurrency exchange Upbit is under scrutiny for alleged breaches of Know Your Customer (KYC) procedures by local regulators.
KYC Violations at Upbit
South Korea's Financial Intelligence Unit of the Financial Services Commission has identified between 500,000 and 600,000 potential KYC violations on the Upbit exchange. These violations could affect the exchange's operations and result in fines of 100 million Korean won per case.
Previous Monopoly Investigation
In October 2023, the Financial Services Commission of South Korea launched an investigation against Upbit on suspicion of anti-monopoly breaches. This investigation relates to the exchange's potential dominance and its connection with K-Bank.
Connection with K-Bank and Implications
K-Bank, linked to Upbit, has drawn regulatory attention due to its high exposure to crypto-related deposits. In 2023, K-Bank withdrew its initial public offering due to concerns over high valuation and dependency on a cryptocurrency operator for funding.
The developments surrounding Upbit will be crucial for the industry, especially in the context of South Korea's rapidly evolving regulatory landscape.
