{"id":8261,"date":"2025-01-17T15:46:54","date_gmt":"2025-01-17T15:46:54","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8261"},"modified":"2025-01-17T15:46:54","modified_gmt":"2025-01-17T15:46:54","slug":"south-koreas-upbit-faces-regulatory-scrutiny-after-kyc-aml-violations","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8261","title":{"rendered":"South Korea\u2019s Upbit Faces Regulatory Scrutiny After KYC, AML Violations"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400\">South Korea\u2019s largest cryptocurrency exchange, Upbit, is under intense regulatory scrutiny. After being accused of violating over 700,000 Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations, Upbit is facing suspension.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to <a href=\"https:\/\/www.mk.co.kr\/news\/economy\/11219802\" target=\"_blank\" rel=\"nofollow\">local media reports<\/a> published on 16 January 2025, the Financial Intelligence Unit (FIU), a division of South Korea\u2019s Financial Services Commission (FSC), has issued a suspension notice to Upbit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The authorities are proposing a six-month ban on registering new users.\u00a0<\/span><\/p>\n<p><strong>Explore: <a href=\"https:\/\/99bitcoins.com\/news\/south-korea-doesnt-want-to-be-vague-about-crypto-anymore-stock-exchange-chief-calls-for-institutionalization\/\" rel=\"bookmark\">South Korea Doesn\u2019t Want To Be Vague About Crypto Anymore! Stock Exchange Chief Calls For Institutionalization<\/a><\/strong><\/p>\n<h2><strong>The Allegations: A Massive Compliance Breach<\/strong><\/h2>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\">Financial Authorities Impose Business Suspension on Upbit<img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><\/p>\n<p>1\/ Breaking: South Korea\u2019s Financial Intelligence Unit (FIU) has issued a preliminary suspension order against Upbit\u2014Korea\u2019s largest crypto exchange\u2014over alleged KYC\/AML non-compliance. If confirmed on Jan 21, Upbit\u2026<\/p>\n<p>\u2014 BLOCKMEDIA(\ube14\ub85d\ubbf8\ub514\uc5b4) (@with_blockmedia) <a href=\"https:\/\/twitter.com\/with_blockmedia\/status\/1879809046573895766?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">January 16, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400\">The FIU alleges that Upbit failed to properly verify the identities of between 500,000 and 700,000 accounts, a critical requirement under South Korea\u2019s Special Financial Transactions Act.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">This law mandates strict KYC compliance to prevent money laundering and other financial crimes.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Each violation could result in fines of up to 100 million Korean won (approximately $68,600), potentially exposing Upbit to penalties totaling $34.3 billion\u2014a staggering amount that underscores the severity of the allegations.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Additionally, regulators claim that Upbit conducted transactions with unregistered foreign cryptocurrency service providers, further compounding its legal troubles.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Upbit has until 20 January 2025 to respond to the FIU\u2019s allegations before a final decision is made on 21 January. The exchange is expected to present its case vigorously, given the high stakes involved.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">In July 2024, the Virtual Asset User Protection Act was implemented, introducing stricter compliance requirements for crypto exchanges. These include enhanced KYC\/AML measures, user deposit protections, and mandatory reporting of suspicious transactions.<\/span><\/p>\n<p><strong>Related:\u00a0<a href=\"https:\/\/99bitcoins.com\/news\/south-korea-delays-20-crypto-tax-for-third-time-cites-regulatory-refinement\/\">South Korea Delays 20% Crypto Tax For Third Time, Cites Regulatory Refinement<\/a><\/strong><\/p>\n<h1 class=\"page-title\">South Korea\u2019s FSC Opens Door For Corporate Investments In Crypto Assets<\/h1>\n<p>Recently, South Korea\u2019s FSC announced its intention to allow corporate investments in digital assets.<\/p>\n<p>FSC Secretary-General Kwon Dae-young announced the move in a 2025 briefing. He said, \u201cWe need to discuss how to create listing standards, what to do with stablecoins, and how to create rules of conduct for virtual asset exchanges.\u201d<\/p>\n<p>He further added, \u201cWe will work to align with global regulations in the virtual asset market.\u201d<\/p>\n<p>The proposed changes extend beyond crypto investments. Current regulations allow companies to hold up to 5% of stocks in non-subsidiary entities. The FSC plans to increase this limit to 15%, enabling corporations to exert greater operational control. Additionally, there are plans to relax consignment business regulations and enhance data-sharing mechanisms within financial holding groups.<\/p>\n<p>The new framework also seeks to create rules of conduct for virtual asset exchanges, ensuring a fair and transparent trading ecosystem.<\/p>\n<p><strong>Related: <a href=\"https:\/\/99bitcoins.com\/news\/south-koreas-fsc-open-doors-for-corporate-investments-in-crypto-assets\/\" rel=\"bookmark\">South Korea\u2019s FSC Opens Door For Corporate Investments In Crypto Assets<\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/south-koreas-upbit-faces-regulatory-scrutiny-after-kyc-aml-violations\/\">South Korea\u2019s Upbit Faces Regulatory Scrutiny After KYC, AML Violations<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s largest cryptocurrency exchange, Upbit, is under intense regulatory scrutiny. After being accused of violating over 700,000 Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations, Upbit is facing suspension.\u00a0 According to local media reports published on 16 January 2025, the Financial Intelligence Unit (FIU), a division of South Korea\u2019s Financial Services Commission (FSC), [&hellip;]<\/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-8261","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\/8261","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=8261"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8261\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}