#Upbit Under Investigation for KYC Violations#
Hot Topic Overview
Overview
The Financial Intelligence Unit (FIU) of the Financial Services Commission of Korea will hold a sanctions review committee meeting on January 21 regarding Upbit, mainly focusing on violations of Know Your Customer (KYC) obligations found during an on-site inspection of Upbit last August. The FIU discovered approximately 500,000 to 600,000 suspected KYC violation cases, including instances where accounts were opened despite blurry ID information submitted by customers. The outcome of the review could involve disciplinary action against Upbit employees, determination of the amount of fines, and potentially impact Upbit's Virtual Asset Service Provider (VASP) re-registration process.
Ace Hot Topic Analysis
Analysis
The Financial Information Analysis Institute (FIU) of the Financial Services Commission of Korea will hold a sanctions review committee meeting on January 21st regarding Upbit. The meeting will focus on KYC (Know Your Customer) obligation violations discovered by the FIU during an on-site inspection of Upbit last August. According to reports, the FIU inspection revealed approximately 500,000 to 600,000 suspected KYC violations at Upbit, including cases where customers were able to open accounts despite submitting blurred identification documents. The outcome of this review may involve disciplinary action against Upbit employees and the determination of fines. The key focus will be on whether the KYC violations are linked to money laundering activities. The review could also impact the renewal of Upbit's registration as a Virtual Asset Service Provider (VASP). Upbit's registration renewal, originally scheduled for completion in October 2022, has been delayed due to this issue and is currently awaiting processing.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Upbit is suspected of violating KYC regulations, and the Korean FIU will hold a sanctions review committee on January 21.
This review mainly involves the violation of customer identity verification (KYC) obligations found by the FIU during its on-site inspection of Upbit last August.
Related fines and penalties are expected to be finalized after the review, focusing on whether the KYC violations are related to money laundering.
This review could affect Upbit's virtual asset service provider (VASP) renewal registration process.