South Korea’s Financial Intelligence Unit, part of the FSC, has identified between 500,000 and 600,000 potential violations of KYC procedures at the Upbit exchange, according to Maeil Business.
Specifically, Upbit allegedly allowed users to open accounts using identifiers with blurred personal details such as names and registration numbers.
The platform faces fines of 100 million KRW ($71,500) for each case, as well as issues with license renewal.
Information about the alleged claims against Upbit emerged a month after the FSC announced plans to investigate the exchange’s activities in connection with potential antitrust law violations.
Earlier, Kaiko analysts assessed a decline in Upbit’s share over a 12-month period in the global spot and derivatives cryptocurrency trading. The figure fell from 6.8% to 5.8%, causing the platform to drop from second to fourth place, behind Bybit and OKX.
In June 2023, South Korea’s parliament passed a law to protect cryptocurrency users. The document introduced the concept of “digital assets” and defined liabilities for offenses, including insider information and unfair trading practices.