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South Korea’s Financial Intelligence Unit (FIU) has issued an institutional warning and imposed fines amounting to ₩27.3 billion ($1.89 million) on Korbit, citing extensive violations of the nation’s anti-money laundering (AML) regulations.
In a statement, the FIU indicated that it had detected numerous infractions following a thorough on-site examination of the cryptocurrency exchange carried out between October 16 and October 29, 2024.
Thousands of AML Violations Detected
The FIU reported that Korbit was responsible for around 22,000 breaches concerning customer due diligence and transaction-restriction requirements.
According to the FIU, over 12,800 instances involved failures in customer identification, which included accepting ambiguous or incomplete identity documents, approving accounts with missing or inaccurately recorded addresses, neglecting to re-verify customer identities when necessary, and permitting transactions for customers whose money-laundering risk ratings had been elevated without further checks.
Additionally, 9,100 cases were identified as violations of transaction-restriction regulations, where Korbit permitted trading activities for customers whose identity verification had not been finalized — a clear infringement of Korean AML laws.
Transactions With Unregistered Foreign Platforms
The FIU also discovered that Korbit facilitated 19 crypto asset transfers involving three foreign virtual asset service providers that were not registered in accordance with South Korean legislation. Such transactions are explicitly forbidden under the Specified Financial Transaction Information Act.
Furthermore, the regulator noted 655 violations related to Korbit’s failure to perform money-laundering risk assessments prior to endorsing new products, including certain NFT-related services.
Accountability Actions
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Alongside the institutional penalty, the FIU stated that it has also enacted disciplinary measures against senior management. The chief executive of Korbit received a formal warning, while the company’s compliance reporting officer was reprimanded, reflecting their accountability for the extent and nature of the violations.
The FIU mentioned that the sanctions are a result of a thorough evaluation of the seriousness of the breaches, their underlying causes, and the company’s corrective measures, as well as precedents under current law.
The regulator added that more information regarding the sanctions will be made available on its website after completing procedural steps, including the final confirmation of the fine amount once Korbit is given the chance to present its views.
The FIU stressed that it will continue to pursue follow-up enforcement actions arising from ongoing inspections and cautioned that significant violations of AML regulations will be addressed rigorously.
“Enhancing AML capabilities and compliance frameworks among virtual asset service providers is crucial for the crypto market to develop based on public trust,” the FIU stated.
Mirae Asset Group Considers Korbit Acquisition
Earlier this month, it was reported that Mirae Asset Group has initiated discussions to acquire the crypto exchange Korbit, as traditional finance continues to explore licensed crypto infrastructure.
Mirae Asset is in negotiations to purchase Korean crypto exchange Korbit through its consulting division, as traditional finance seeks to secure regulated crypto infrastructure.#Mirae #Korbit https://t.co/jS5Uh6uzmJ
— Cryptonews.com (@cryptonews) December 29, 2025
The negotiations are being conducted through Mirae Asset Consulting, a non-financial subsidiary of the group, which has entered into a memorandum of understanding with Korbit’s primary shareholders, according to reports from South Korean media.
Korbit is predominantly owned by NXC, the parent company of gaming giant Nexon, which holds approximately 60.5% of the exchange. SK Planet possesses an additional 31.5%, as reported.
The post South Korea Fines Crypto Exchange Korbit $1.9M After AML Breaches appeared first on Cryptonews.
