Key Takeaways
- Korbit fined KRW 2.73 billion (approx. $1.9 million) by South Korea’s Financial Intelligence Unit (FIU) for anti-money laundering violations.
- The FIU said Korbit allowed trading by customers who had not completed KYC checks, accepted improper identity documentation, and processed transfers involving unregistered overseas operators.
South Korea’s Financial Intelligence Unit (FIU) has sanctioned Korbit following a comprehensive review that uncovered widespread anti–money laundering (AML) failures, according to a regulatory notice issued on December 31.
The country’s fourth-largest crypto exchange received an institutional warning and was fined KRW 2.7 billion (approximately $1.9 million) after inspectors found repeated violations of customer verification requirements and transaction restriction rules under the Specific Financial Information Act.
Korbit was found to have committed around 22,000 AML breaches, mainly related to incomplete KYC checks and permitting trading by unverified users. Regulators also flagged transfers to unregistered overseas platforms and 655 failures to conduct required money-laundering risk assessments.
Beyond the institutional fine and warning, the watchdog issued a warning to Korbit’s CEO and reprimanded the firm’s designated reporting officer. Korbit has at least ten days to submit comments before the regulator finalizes the penalty amount.
These measures emphasize the importance of legal compliance and aim to reinforce anti-money laundering capabilities in the crypto sector.
FIU’s action follows reports that Mirae Asset Financial Group was in talks to acquire Korbit from NXC and SK Planet for $100 million. Led by Mirae Asset Consulting, the potential acquisition would mark the group’s initial entry into the digital asset sector and diversify its traditional financial portfolio.
Source: https://cryptobriefing.com/fiu-sanctions-korbit-money-laundering/