South Korea’s Crackdown on Upbit: A New Era in Crypto Compliance – BitRss

South Korea’s largest cryptocurrency exchange, Upbit, faces scrutiny due to allegations of Customer Due Diligence (KYC) violations. The country’s Financial Intelligence Unit (FIU) is set to hold a disciplinary hearing on January 21 to assess the exchange’s regulatory compliance.

Assessing Upbit’s KYC Violations

The FIU will conduct a review meeting to evaluate over 500,000 potential KYC violations identified during an on-site inspection for the virtual asset service provider (VASP) license renewal. This marks the first hearing addressing the issues raised during the VASP renewal audit.

Since August of last year, Upbit has been under investigation for KYC violations led by the financial regulatory authority. The FIU discovered that unauthorized customer verification procedures ranged between 500,000 and 600,000 during the license renewal process.

Crypto Regulatory Standards in South Korea

South Korea is making strides towards establishing a crypto-focused regulatory framework. The Financial Services Commission has initiated discussions on the second phase of crypto regulations, particularly…