Upbit, the largest cryptocurrency exchange in South Korea, reportedly violated know-your-customer (KYC) rules for over 500,000 identifications, as discovered by the countrys financial watchdog during its license renewal review.
Maeil Business Newspaper, a local newspaper, reported today that the Financial Services Commission has found that Upbit failed to properly implement KYC procedures for at least 500,000 to 600,000 cases. For example, a user account was opened with a blurred identification card, and some accounts were created without proper verification, the report said.
Violations of KYC rules can result in fines of up to 100 million won ($71,740), and Upbit could also encounter challenges with its license renewal.