The Financial Intelligence Unit (FIU) has scheduled a disciplinary hearing on January 21 to assess Upbit’s compliance with KYC regulations.
The cryptocurrency exchange known as Upbit, which is the largest in South Korea, is currently under greater attention due to allegations of Know-Your-Customer (KYC) infractions.
A hearing for disciplinary action has been planned on the 21st of January by the Financial Intelligence Unit (FIU) of South Korea in order to assess the exchange’s compliance with regulatory requirements.
FIU Meeting To Assess Upbit’s KYC Violations
Because of this, the cryptocurrency market can experience a major decrease in activity during the review. The Financial Intelligence Unit (FIU) said that the sanctions review meeting would be used to look at the more than 500,000 possible Know Your Customer code violations during the on-site inspection for the renewal of the virtual asset service provider (VASP).
According to reports, this sanctions-level meeting for Upbit is the first hearing of its kind, and it is intended to resolve flaws that were discovered during a certification renewal check for VASP.
This meeting will examine the degree of the fines that could be imposed on Upbit, taking into consideration factors such as failure to comply with KYC regulations.
In order to decide how harsh the penalties and disciplinary actions would be against the platform, the regulatory body would look at the crypto exchange’s explanation for the alleged violations it committed.
Upbit Faces Scrutiny Under South Korea’s FIU
Upbit has been the subject of investigations conducted by the financial watchdog since August of the previous year. In the course of the process of renewing licenses, the Financial Intelligence Unit discovered between 500,000 and 600,000 instances of unlawful client verification operations.
This includes situations in which accounts were accepted despite the fact that the customer’s name or registration number was completely obscured, making it impossible to identify the customer.
Although these examples bring to light the exchange’s unwillingness to adhere to regulatory norms, it is still unclear whether or not they genuinely constitute violations of the Know Your Customer (KYC) policy.
In spite of this, it is highly probable that FIU will arrive at conclusions after the disciplinary meeting, particularly concerning the answers provided by Upbit. The South Korean government has started the process of creating a cryptocurrency-focused regulatory framework.
Recently, the Financial Services Commission has started discussions on the second phase of cryptocurrency laws, specifically focusing on stablecoins and customer security.
It is also important to note that South Korea’s recent partnership with the United States and Japan to combat the expanding crypto threats demonstrates the country’s dedication to the protection of its users.
In a report that was jointly distributed by the three governments the day before, they issued a warning about the North Korean hackers’ eye on cryptocurrency.
The Financial Intelligence Unit (FIU) meeting on Upbit’s KYC violation has significantly transformed South Korea’s regulatory landscape. Despite the fact that the summit is taking place in South Korea, it has the potential to have a wider-ranging impact on crypto policies and legislation around the world.
