Kim Byoung-hwan, the chief of the Financial Services Commission (FSC), left, speaks during a meeting at the national assembly in Seoul, Feb. 18. Yonhap

Korea's chief financial regulator said Tuesday that his agency will soon decide the level of sanctions against Upbit, the country's largest cryptocurrency exchange, over lapses in customer verification obligations.

Upbit has been found to violate obligations to verify customer identifications, critical in cracking down on money laundering.

Over 700,000 cases of rule violations have been discovered during the assessment of its business license renewal.

"We are proceeding with the case quickly," Kim Byoung-hwan, governor of the Financial Services Commission, said during a parliamentary session. "We will conclude (the case) as soon as possible."

There have been speculations that Upbit may face a business suspension for up to six months, or a fine.

Upbit, which dominates with over 70 percent of the local crypto exchange market, is also facing an antitrust investigation over market dominance and unfair business practices. (Yonhap)