South Korea‘s Financial Services Commission (FSC) is set to announce its decision on Upbit. Most likely, the crypto exchange will face serious sanctions due to numerous violations in verifying the identity of clients.
According to South Korean media, Upbit, which controls more than 70% of the local crypto market, “failed to fully comply with customer verification requirements aimed at preventing money laundering.”
According to the regulations, all financial institutions in South Korea must verify the identity of their customers using government-issued ID cards to comply with AML (Anti-Money Laundering) regulations.
The commission found more than 700 violations of the rule during an inspection required to renew a company’s license. Under South Korea’s Special Financial Transactions Act, each such violation Upbit faces a $68 fine.
According to FSC head Kim Byung-hwan, the decision regarding Upbit will be adopted as soon as possible. According to rumors, the Commission may suspend the exchange for up to six months or fine the company and restrict the registration of new users.
South Korean authorities have tightened regulations for cryptocurrency companies operating in the country after the data of more than 2017 users was exposed following a hack of local exchange Bithumb in 31.