The Financial Services Commission (FSC), South Korea's financial watchdog, has uncovered significant know-your-customer (KYC) breaches at Upbit, the country's largest crypto exchange.
A local newspaper has reported that the FSC identified inadequate know-your-customer procedures for between 500,000 and 600,000 user accounts during a recent license renewal review.
The report highlighted cases of blurred ID cards and accounts created without proper verification.
These violations could carry fines of up to 100 million won ($71,740) for Upbit. In addition, the platform could face problems renewing its operating license.