Upbit Under Investigation for Serious KYC Violations

user avatar

by Giorgi Kostiuk

2 years ago

The leading cryptocurrency exchange in South Korea, Upbit, is currently under investigation for serious breaches in customer identification protocols.

What Issues Did the Investigators Find?

The FIU initiated its review in August as part of Upbit’s license renewal process. Findings revealed that the exchange had inadequately executed its KYC processes. Users frequently submitted identification documents with obscured names or registration numbers, yet these accounts were still approved.

How Could This Impact Upbit’s Future?

The opening of accounts with questionable documents raises the risk of criminal activity. The FIU is diligently examining all suspicious cases, but Upbit has stated that sharing details about the investigative process is not permissible under current laws. Regulatory repercussions could be significant for Upbit, with potential fines reaching up to 1 billion Korean won for each KYC violation identified. The cryptocurrency exchange must renew its license every three years, and any violations could hinder that process.

Impact on the Cryptocurrency Market

The final verdict from the FIU, following comprehensive investigations, will be pivotal for Upbit and may reshape the regulatory landscape for cryptocurrency exchanges in South Korea.

The outcomes of the investigation could profoundly affect both Upbit and the entire cryptocurrency market.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Gopax Operator Streami Caught in Cybersecurity Investigation

The Financial Services Commission of South Korea has identified Streami, the operator of the cryptocurrency exchange Gopax, as one of the 16 financial firms affected by recent hacking incidents.

user avatarGustavo Mendoza

Regulatory Discussions on Stablecoin Yield and Banking Reserves

Regulatory discussions on stablecoin yield and banking reserves are ongoing in Washington, focusing on the implications for issuers and the requirement to maintain reserves in bank deposits.

user avatarMiguel Rodriguez

Binance Declares Shutdown of Mining Pool Services.

Binance will discontinue its mining pool and related services on November 10, 2026, requiring miners to redirect their machines.

user avatarRajesh Kumar

Banks Counter Stablecoin Growth with Higher Deposit Rates

A new working paper reveals that banks can slow the growth of stablecoins by increasing deposit rates.

user avatarLuis Flores

Polygon Labs Completes Acquisition of Coinme

Polygon Labs has finalized its acquisition of Coinme, enhancing its payment capabilities with numerous state licenses.

user avatarArif Mukhtar

Bitcoin Open Interest Sees Slight Decline While Funding Rates Remain Positive

A recent snapshot of the Bitcoin derivatives market revealed that open interest has decreased by 0.69% over the past 24 hours, now standing at 768 billion. Despite this decline, the funding rate remains positive at 0.00035 per eight-hour interval, suggesting that long positions are still willing to pay shorts on perpetual contracts.

user avatarMaria Gutierrez

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.