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UPbit. (Photo = Dunamu) |
[Alpha Biz= Kim Sangjin] The financial authorities are set to hold the second disciplinary hearing on Upbit, which is under investigation for alleged violations of anti-money laundering obligations. These violations include failures in the customer verification system (KYC). The outcome of this hearing is highly anticipated, especially since Upbit presented its counterarguments during the first hearing.
According to financial industry sources, the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) will conduct the second hearing on February 5. Upbit has already received a preliminary notice of a severe penalty, which includes a potential business suspension for not meeting anti-money laundering obligations under the Special Financial Transactions Act.
The first disciplinary hearing took place on January 15, where FIU explained the grounds for the proposed sanctions and allowed Upbit to present its defense. Legal and other experts represented Upbit during this session, strongly arguing that the severity of the sanctions was disproportionate.
The second hearing is expected to focus on the specific violations by Upbit, such as the KYC breaches, and will assess the penalties according to the details of each violation.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
