TechFlow news — According to Korea's Maeil Business Newspaper, during the license renewal review process for Upbit, the Korea Financial Intelligence Unit (KoFIU) has discovered at least 500,000 cases suspected of violating customer identification (KYC) obligations. KoFIU is currently reviewing the illegality of each case individually.
The violations reportedly involve certain accounts that registered using unclear or ambiguous identity documents. Under South Korea's Act on Reporting and Use of Certain Financial Transaction Information, virtual asset service providers must renew their operating licenses every three years. Violations of KYC obligations can result in fines of up to 100 million Korean won per case.
These unverified accounts could potentially be used for money laundering or other illicit activities. As a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) compliance, KYC procedures require exchanges to ensure users submit valid identification and complete identity verification. The KoFIU's review of Upbit remains ongoing, with market participants closely watching the final penalties and the decision on license renewal.
