South Korea's Upbit Stock Exchange Suffers Due to KYC Protocol

According to Chu Sun Ilbo Chosun IlboIn South Korea, a set of new regulatory requirements that took effect last week have slowed business at Upbeat UpbitThe largest crypto exchange in the country.

The recently issued amendments to the Law on the Use of Specific Financial Information mean that continued trading will be limited to clients who have completed the KYC authentication steps. key including identity verification.

key Or, in short, “know your customer” is the procedure companies take to verify the identity of their customers, in accordance with applicable legal requirements and regulations, in order to combat online fraud.

But in the case of the Abbet Stock Exchange, Upbit Leading the market, validation of clients can take “seven days” in the best case scenario, and up to three months.

South Korea's crypto sector still reeling from last week's "massacre"

Upbit will increase the number of its employees

The problem appears to lie with the government, with the exchange having to go through slow government administrative computer network systems in order to register the required paperwork and photocopies of documents such as driver's licenses.

Regulatory authorities had given a one-week grace period for exchange users to register “know your customer” authentication, but only for transactions with a value less than 845 US dollars.

A stock exchange official was quoted in this regard as saying:

“If financial regulators demand that KYC be implemented en masse without a grace period, there will be a lot of customers who will be restricted in their transactions, because they have not yet received the authentication permissions.”

Finally, the UpBit Stock Exchange clarified that it is preparing to double the number of employees, in an attempt to remedy the possible increase in the number of complaints from affected clients, according to the new regulatory requirements.