South Korean Regulator Accuses Dunamu of Intentional Verification Lapses

Citing BitcoinWorld, South Korea’s Financial Intelligence Unit (FIU) has accused Dunamu, operator of Upbit, of intentional or grossly negligent verification failures. The FIU determined that the lapses were not mere oversights but potentially deliberate, raising concerns about exchange accountability and regulatory compliance. The post-verification failures involve ongoing monitoring processes, including tracking suspicious transactions and updating customer information, which are critical for preventing money laundering and other illicit activities. The classification of these failures as intentional could lead to heavier penalties and set a precedent for global exchange regulation. Dunamu now faces potential fines, operational restrictions, and reputational damage, while other exchanges may review their compliance systems in response.