{"id":2809,"date":"2024-11-16T19:04:03","date_gmt":"2024-11-16T19:04:03","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=2809"},"modified":"2024-11-16T19:04:03","modified_gmt":"2024-11-16T19:04:03","slug":"crypto-exchange-upbit-faces-south-korean-probe-over-600000-kyc-violations","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=2809","title":{"rendered":"Crypto Exchange Upbit Faces South Korean Probe Over 600,000 KYC Violations"},"content":{"rendered":"
\n

Upbit, the leading crypto exchange in South Korea, is being investigated by the country\u2019s financial authorities over an alleged violation of Know-Your-Client (KYC) procedures. The probe comes amid the exchange\u2019s license renewal process and a potential investigation for \u201canti-monopoly breaches.\u201d<\/p>\n

Crypto Exchange Faces Probe For Potential KYC Violations<\/h2>\n

According to local reports, South Korea\u2019s Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC)\u00a0has started investigating crypto exchange Upbit for potential violations of KYC requirements.<\/p>\n

Maeil Business Newspaper revealed<\/a> that the financial authorities identified large-scale cases suspected of violating customer identification procedures while reviewing the crypto exchange\u2019s license renewal process. Under the Special Money Act, virtual asset service providers (VASPs) must renew their licenses every three years.<\/p>\n

The FIU found between 500,000 and 600,000 cases where the KYC process was not properly followed. Seemingly, the crypto exchange opened thousands of accounts for users without the proper verification.<\/p>\n

In South Korea, VASPs must comply<\/a> with anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) requirements. To achieve this, users are required to complete the KYC identification process when creating an account on crypto platforms.<\/p>\n

Customers must use submit IDs to validate their identity, which undergoes a verification process by the crypto exchange. However, the Korean authority found that Upbit potentially broke AML and CFT requirements by failing to conduct the KYC process properly.<\/p>\n

The FIU located thousands of cases where accounts were opened without the proper verification, as the ID picture submitted was ineligible. The financial authority is re-examining the potential violations<\/a> on a case-to-case basis to assess whether they break the law or have been used for money laundering or crypto-related crimes.<\/p>\n

Recently, the Delhi police arrested<\/a> a suspect linked to the $235 million hack of Indian exchange WazirX. The suspect allegedly sold an account created with a fake name to the individual who eventually conducted the crypto heist.<\/p>\n

Upbit\u2019s License Renewal Could Be Delayed<\/h2>\n

It\u2019s worth noting that Upbit\u2019s license renewal process, which started in August, has raised questions among the financial community for its prolonged timeline. The report highlights that the process has been affected by the extensive investigation.<\/p>\n

The FIU has to determine how many of the 600,000 potential KYC violations are correct. However, the crypto exchange could face fines<\/a> of up to 100 million won per case, worth around $71,000, and Upbit\u2019s license renewal could be further delayed if the reviewing process extends.<\/p>\n

Moreover, the crypto exchange might face another probe amid its renewal process. Last month, a local news media outlet reported<\/a> that the Financial Services Commissioner Kim Byung-hwan announced a potential investigation into the exchange\u2019s \u201cmonopoly structure.\u201d<\/p>\n

Kim responded to lawmaker Lee Kang-il\u2019s concerns during an audit by the South Korean parliament, stating that the financial regulator was aware of Upbit\u2019s potential market monopoly and assuring it would investigate the issue and its partnership with K-Bank.<\/p>\n

\"Crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Upbit, the leading crypto exchange in South Korea, is being investigated by the country\u2019s financial authorities over an alleged violation of Know-Your-Client (KYC) procedures. The probe comes amid the exchange\u2019s license renewal process and a potential investigation for \u201canti-monopoly breaches.\u201d Crypto Exchange Faces Probe For Potential KYC Violations According to local reports, South Korea\u2019s Financial […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-2809","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2809"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2809\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}