It is no longer news that governments across the world are stepping into the cryptocurrency space in a bid to monitor and regulate the activities of exchanges and traders. Exchanges are now required to take customers through ‘Know Your Customer (KYC)’ and ‘Anti-Money Laundering (AML)’ processes.
In what seems like a crackdown on the highhandedness and non-compliance of exchanges, South Korea’s largest cryptocurrency exchange, Upbit, is under close scrutiny and investigation for alleged fraud.
According to local news outlet, Chosun, the police believes that the exchange has deceived investors by faking its balance sheets. The country’s Financial Supervisory Commission (FSC) is said to have sent ten investigators to Seoul, the exchange’s head office. Their aim is to audit Upbit’s virtual currency holding with the aim of spotting anomalies.
This is not the first-time regulators are coming hard on exchanges. In April, CoinNest’s co-founder was detained on charges of fraud and embezzlement.