Representatives of the regulatory agency conducted an on-site inspection of the company’s office, which was needed to renew its operating license. However, in hundreds of thousands of cases, documents provided by customers for verification turned out to be unreadable.
According to the department, management Upbit negligently approached the verification procedure KYC. According to South Korean law, a fine of up to 100 million Korean won ($71,700) can be imposed for each violation of obligations to identify platform customers. In total, the Upbit exchange could face a fine of up to $43 billion.
The platform’s first problems began in October, when the country’s parliament raised the issue of the company’s monopoly position in the local market. In response, the Financial Services Commission of South Korea (FCS) stated that they would analyze the situation with the activities of the site.
Local journalists write that officials can check identified violations for a long time, and the regulator’s conclusions can affect not only the size of the fine, but also the further continuation of the work of the Upbit exchange.
Earlier, South Korean Minister of Economy and Finance Choi Sang-mok said that the authorities intend to strengthen oversight of international crypto transactions to curb crimes related to digital assets.
Source: Bits
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