Korbit Slammed with $2M Fine for Massive AML Failures in Korea

Korbit was fined 2.73 billion won by South Korea's FIU for about 22,000 AML violations, including incomplete customer checks and unauthorized overseas transactions, signaling stricter crypto regulation.

South Korea's Financial Intelligence Unit (FIU) has fined cryptocurrency exchange Korbit 2.73 billion won (approximately $2 million) following an inspection that uncovered around 22,000 violations of anti-money laundering (AML) regulations. The breaches included failures in customer due diligence, incomplete or unclear identity verification, and neglecting mandatory money laundering risk assessments before listing new digital assets, including NFTs. Korbit also facilitated 19 transactions with unregistered overseas virtual asset service providers, violating local reporting requirements. The FIU issued an institutional warning to Korbit, a caution to its chief executive, and a reprimand to the compliance reporting officer. These actions highlight intensified regulatory scrutiny of South Korea's crypto sector and signal a push for stricter compliance and enhanced monitoring systems across the industry.