South Korea's largest cryptocurrency exchange, Upbit, is struggling with a major crisis.

According to a report from a local source during the day, the FSC's investigation has identified at least 500,000 to 600,000 KYC violations. This development, which has shocked the financial world, could reshape the future of the South Korean cryptocurrency market.

FINES AND LICENSE CANCELLATION ON THE HORIZON

According to CoinMarketCap data, Upbit, which is the world's fifth-largest spot exchange, recorded a trading volume of $7.7 billion in the last 24 hours. The FSC's review revealed serious deficiencies in the exchange's customer identity verification processes.

This development, which follows FSC Chairman Kim Byung-hwan's announcement last month that he would investigate the monopolization trend in the South Korean cryptocurrency exchange market, could jeopardize Upbit's position.

In October, Upbit conducted $48.2 billion in cryptocurrency transactions. FSC officials preferred not to provide further details about the ongoing investigation.