South Korea's Upbit Faces Investigation for Over 500,000 KYC Violations, License Renewal at Risk

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South Korea’s Upbit is under investigation. Reports say they have over 500,000 violations of know-your-customer (KYC) rules. The country’s financial watchdog found that Upbit, the largest crypto exchange in South Korea, approved many accounts without proper ID checks. In October, Upbit processed more than $48.2 billion in crypto transactions.

The Financial Services Commission (FSC) discovered that Upbit failed to follow KYC procedures for at least 500,000 to 600,000 cases during a license renewal review. According to Maeil Business Newspaper, some accounts were opened with blurred ID cards, and others were created without any verification. These KYC violations can lead to fines of up to 100 million won (about $71,740). Upbit might also face challenges when renewing its license.

The Block reached out to Upbit for a comment on the investigation. However, an official from the FSC didn’t provide more details. Upbit ranks fifth on CoinMarketCap among top exchanges and handled over $7.7 billion in trade volume in the past 24 hours. According to The Block, they processed more than $48.2 billion in crypto transactions in October. FSC Chair Kim Byung-hwan mentioned last month that he would investigate the monopolistic nature of South Korea's crypto exchange market, which is largely dominated by Upbit.