Korbit hit with 2.73 billion won ($1.9M) fine after regulator finds widespread AML/KYC failures
South Korean crypto exchange Korbit has been fined 2.73 billion won (about $1.9 million) by the country’s Financial Intelligence Unit (FIU) for multiple breaches of anti–money‑laundering (AML) and customer verification rules. The FIU said the exchange violated core provisions of the Special Financial Transactions Act, citing lapses in customer due diligence and failures to enforce transaction restrictions.
Alongside the monetary penalty the FIU imposed an institutional warning and took personal disciplinary measures against senior Korbit executives. The regulator said it issued a warning to the CEO and a reprimand to the employee responsible for reporting compliance issues. The action follows an on-site inspection in October 2024 that uncovered “thousands” of AML and know‑your‑customer (KYC) verification violations, the FIU said.
The enforcement comes as Korbit is reportedly in talks to be acquired by Mirae Asset, a major Seoul‑based financial group that has not previously been active in crypto. Media reports have suggested Mirae Asset is negotiating to buy a majority stake in Korbit in a deal that could be worth up to $98 million. The timing of the FIU’s ruling adds regulatory scrutiny to the potential transaction.
The FIU framed the action as part of a broader push to “strengthen anti‑money laundering capabilities and legal compliance systems of businesses so that the virtual asset market can grow with public trust.” The move follows another high‑profile penalty in November, when the FIU fined Dunamu — operator of South Korea’s largest exchange, Upbit — about $25 million and issued additional sanctions for similar compliance failures.
Implications: beyond the immediate financial hit and executive reprimands, the sanctions may complicate Korbit’s sale process and reinforce regulator and investor demand for stricter compliance across the crypto sector as authorities clamp down on AML and KYC shortcomings.
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