South Korea’s Financial Regulator Flags 600,000 Potential KYC Violations on Upbit

BE[IN]CRYPTO11-15 19:21

South Korea’s FIU uncovered up to 600,000 potential KYC violations at Upbit, risking fines of $75,000 per breach. The violations threaten Upbit's license renewal, reflecting scrutiny over its role in ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSouth Korea’s Financial Regulator Flags 600,000 Potential KYC Violations on Upbit\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-15 19:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://beincrypto.com/south-koreas-regulator-flags-upbit-kyc-violations/><strong>BE[IN]CRYPTO</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>South Korea’s FIU uncovered up to 600,000 potential KYC violations at Upbit, risking fines of $75,000 per breach.\nThe violations threaten Upbit's license renewal, reflecting scrutiny over its role in ...</p>\n\n<a href=\"https://beincrypto.com/south-koreas-regulator-flags-upbit-kyc-violations/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1596574779.USD","symbol_name":"BNP PARIBAS AQUA \"C\" (USDHDG) ACC","start_time":0,"source_url":"https://beincrypto.com/south-koreas-regulator-flags-upbit-kyc-violations/","article_id":"2483322736","we_media_id":null,"thumbnails":["https://beincrypto.com/wp-content/uploads/2023/02/bic_South_Korea_love_blockchain_positive-850x478.png.webp"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483322736","pubTimestamp":1731669690,"sourceInfo":{"source_id":"beincrypto_highlight","name":"BE[IN]CRYPTO"},"weMediaInfo":null,"summary":"South Korea’s FIU uncovered up to 600,000 potential KYC violations at Upbit, risking fines of $75,000 per breach.The violations threaten Upbit's license renewal, reflecting scrutiny over its role in market volatility and fairness.Despite challenges, Upbit has enhanced transparency and compliance, securing key licenses in Asia.South Korea’s Financial Intelligence Unit , part of the Financial Services Commission , uncovered a staggering 500,000 to 600,000 suspected violations of Know Your Customer  requirements at Upbit, the country’s largest cryptocurrency exchange.The discovery comes during a meticulous review of Upbit’s business license renewal application, raising concerns about potential legal and regulatory ramifications.Nevertheless, it is impossible to ignore the prevalence of South Korean traders engaging in “pump and dump” schemes, particularly for altcoins. As noted by CryptoQuant CEO Ki Yong Ju, some traders exploit Upbit’s listings to artificially inflate token prices before","collect":0,"end_time":0,"defaultTopTitle":"beincrypto.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1596574779.USD":"BNP PARIBAS AQUA \"C\" (USDHDG) ACC","LU1165135440.EUR":"BNP Paribas Aqua Classic Cap EUR","LU1543694498.USD":"法巴水资源基金RH MD Dis","LU1620156213.USD":"BNP PARIBAS AQUA \"C\" (USD) INC","LU2413666004.HKD":"BNP PARIBAS AQUA \"CRH\" (HKDHDG) INC","LU1721427968.SGD":"BNP PARIBAS AQUA \"CRH\" (SGDHDG) INC","BK4585":"ETF&股票定投概念","BK4086":"建筑产品","MAS":"马斯科","LU1620156130.USD":"BNP PARIBAS AQUA \"C\" (USD) ACC","BK4588":"碎股","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU2413665964.HKD":"BNP PARIBAS AQUA \"C\" (HKD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC"},"translate_title":"韩国金融监管机构在Upbit上标记了60万起潜在的KYC违规行为","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MAS":1},"content_text":"South Korea’s FIU uncovered up to 600,000 potential KYC violations at Upbit, risking fines of $75,000 per breach.\nThe violations threaten Upbit's license renewal, reflecting scrutiny over its role in market volatility and fairness.\nDespite challenges, Upbit has enhanced transparency and compliance, securing key licenses in Asia.\n\nSouth Korea’s Financial Intelligence Unit (FIU), part of the Financial Services Commission (FSC), uncovered a staggering 500,000 to 600,000 suspected violations of Know Your Customer (KYC) requirements at Upbit, the country’s largest cryptocurrency exchange.\nThe discovery comes during a meticulous review of Upbit’s business license renewal application, raising concerns about potential legal and regulatory ramifications.\nPotential KYC Violations on Upbit\nLocal media reported that according to sources within South Korea’s financial sector, the FIU’s findings were the result of an intensive inspection that began in late August. The violations pertain to lapses in Upbit’s customer verification processes, a crucial component of anti-money laundering (AML) and counter-terrorist financing (CTF) measures.\nExamples of breaches include accounts being approved despite incomplete or blurred identification documents. According to the financial regulator, this could facilitate illicit activities such as money laundering.\nAn official from Upbit reportedly refrained from commenting on the FIU’s ongoing review, citing confidentiality clauses. However, the exchange’s operational future hangs in the balance as financial authorities verify the validity of the flagged cases. Potential fines of up to 100 million won (approximately $75,000) per violation loom.\nThis is not the first time Upbit has been scrutinized. South Korean authorities have consistently monitored the exchange due to its dominant position in the local crypto market. Of note is that it is the largest trading volume in the South Asian region.\nAs BeInCrypto reported, South Korean lawmakers recently opened an investigation against Upbit. The probe centered on the monopoly structure of the virtual asset market built around the trading platform. Similarly, listings on Upbit have been known to cause significant market fluctuations, leading to questions about transparency and fair practices.\nUpbit Listings Remain Controversial\nRecently, Upbit’s move to expand the Uniswap (UNI) trading pair caused a 150% volume spike for the decentralized exchange token. Similarly, the exchange’s popularity boosted Cat in a Dogs World (MEW) to a new peak, also following trading pair expansion. Other tokens that have benefited from trading activities on Upbit include Injective (INJ) and real-world asset (RWA) token Ondo Finance (ONDO).\nNevertheless, it is impossible to ignore the prevalence of South Korean traders engaging in “pump and dump” schemes, particularly for altcoins. As noted by CryptoQuant CEO Ki Yong Ju, some traders exploit Upbit’s listings to artificially inflate token prices before selling them off, leaving other investors at a loss.\n\n“Korean crypto traders love pumping & dumping altcoins, ironically,” Young Ju noted, demonstrating with a video.\n\nIn addition, traders tend to exploit the Kimchi premium, a price gap between South Korean and overseas exchanges. While these practices are not directly linked to Upbit’s management, the exchange’s listings wield an undeniable influence on the market.\nMeanwhile, even in the face of ongoing regulatory challenges, Upbit has recently taken steps to enhance transparency and user protection. In July, the exchange issued its first public disclosure under the newly enacted Virtual Asset User Protection Act. This testified to Upbit’s financial stability, user asset holdings, and risk management practices, reflecting an effort to align with changing regulatory standards.\nAdditionally, Upbit has made strides in global compliance. In January, it secured a Digital Payment Token Services License from Singapore’s Monetary Authority of Singapore (MAS). This milestone followed an earlier conditional approval from the same regulator. The license reflects Upbit’s commitment to regulatory adherence in international markets, even as it faces scrutiny at home.\nNotwithstanding, the FIU’s findings could have far-reaching implications for Upbit, both domestically and internationally. While the financial watchdog has yet to announce definitive conclusions, the scale of potential violations could result in hefty fines.\nFurthermore, besides reputation damage, the case may prompt broader discussions about KYC practices and regulatory compliance across South Korea’s growing crypto sector. Upbit’s influence as a market leader makes its actions particularly significant. Beyond dominating South Korea’s trading volume, Upbit also shapes trends and token adoption rates.\n\n\n\n\nTop crypto projects in the US | November 2024\n\n\n\nCoinbase\nExplore\n                      \n\n\n\n\n\nCoinrule\nExplore\n                      \n\n\n\n\n\nUphold\nExplore\n                      \n\n\n\n\n\n3Commas\nExplore\n                      \n\n\n\n\n\nChain GPT\nExplore\n                      \n\n\n\n\n\n\n\n\nTop crypto projects in the US | November 2024\n\n\nCoinbase\n\n\n\n\n\n\n\n\nCoinrule\n\n\n\n\n\n\n\n\nUphold\n\n\n\n\n\n\n\n\n3Commas\n\n\n\n\n\n\n\n\nChain GPT","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483322736"}