Korean Regulatory Agency Discloses Over 500,000 Suspected KYC Violation Cases at Upbit

BlockBeats News, November 14th, according to South Korea's Daily Economic News, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) of South Korea found at least 500,000 cases of alleged violations of customer due diligence (CDD) obligations during a renewal review of Upbit's exchange platform operations. The FIU is currently individually reviewing the illegality of these cases. The discovered compliance violations mainly involve some accounts using unclear identification documents to complete registration. According to South Korea's Specific Financial Transactions Act, virtual asset exchange platforms are required to renew their operating licenses every three years. For violations of CDD obligations, each case can be fined up to 100 million Korean Won.

Unverified accounts may be used for money laundering or other illicit activities. As a key component of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance requirements, the Know Your Customer (KYC) process requires exchange platforms to ensure that users submit valid identification documents and complete identity verification. The FIU's review of Upbit is still ongoing, and the market is eagerly awaiting the final penalty decision and business renewal determination.