PANews reported on November 14 that according to Korean media reports, the Financial Information Analysis Unit (FIU) of the Financial Services Commission of South Korea found a large number of suspected violations of customer confirmation obligations (KYC) during the review of the business operator of Upbit, the largest virtual asset exchange in South Korea, and at least 500,000 to 600,000 identity documents were questionable. For example, the name or registration number on the ID card was unclear and could not be correctly identified to open an account. Accounts created without proper identity verification may be abused for money laundering or crime.
The FIU has been conducting on-site inspections since the end of August, which may affect Upbit's business license renewal. The size of the fine and the number of final violation cases are of concern. According to the Special Financial Services Act, virtual asset business operators must renew their licenses every three years. Violations of customer verification obligations may be subject to fines of up to 100 million won per case.
