South Korea's Financial Watchdog Sanctions Korbit for Anti-Money Laundering Violations

PermabullPete · 2025-12-31T17:20:25+00:00

South Korea's FIU sanctioned crypto exchange Korbit for major anti-money laundering violations, imposing a KRW 2.7 billion fine and issuing warnings to its CEO and reporting officer. The case highlights the need for compliance in the crypto industry.

PermabullPete

2025-12-31 17:20:25

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Source: CryptoBriefing Original Title: South Korea’s financial watchdog sanctions Korbit for anti-money laundering violations Original Link: https://cryptobriefing.com/fiu-sanctions-korbit-money-laundering/

Overview

South Korea’s Financial Intelligence Unit (FIU) has sanctioned Korbit, the country’s fourth-largest crypto exchange, following a comprehensive review that uncovered widespread anti-money laundering (AML) failures.

Key Violations

Korbit received an institutional warning and was fined KRW 2.7 billion (approximately $1.9 million) after inspectors found:

Around 22,000 AML breaches, mainly related to incomplete KYC checks and permitting trading by unverified users
Incomplete customer verification requirements under the Specific Financial Information Act
Transfers to unregistered overseas platforms without proper oversight
655 failures to conduct required money-laundering risk assessments

Additional Penalties

Beyond the institutional fine and warning, the FIU:

Issued a warning to Korbit’s CEO
Reprimanded the firm’s designated reporting officer
Granted Korbit at least ten days to submit comments before finalizing the penalty amount

Significance

These enforcement measures emphasize the importance of legal compliance and aim to reinforce anti-money laundering capabilities in the crypto sector.

Context

The action comes amid reports that Mirae Asset Financial Group was in discussions to acquire Korbit from NXC and SK Planet for $100 million, which would mark the group’s initial entry into the digital asset sector.

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EternalMiner

· 19h ago

Korea is starting to get into exchanges again. Korbit's recent AML review failure makes it seem like exchanges haven't had an easy time over the past two years.

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LiquidityNinja

· 2025-12-31 17:50

It seems that Korbit has really been hit this time. Anti-money laundering compliance is always a minefield.

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StablecoinArbitrageur

· 2025-12-31 17:50

ngl, korbit getting hit by the fiu is basically just the cost of doing business in korea's regulatory theater. watched the basis points evaporate on won pairs all morning because of this... classic liquidity crunch scenario

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LiquidatedThrice