Korbit, the South Korean cryptocurrency exchange currently in negotiations for acquisition by Mirae Asset, has been fined 2.73 billion won ($1.9 million) by the nation’s regulatory body for several breaches related to anti-money laundering and customer verification.
The Financial Intelligence Unit stated that the exchange was found to have violated essential provisions of the Special Financial Transactions Act, including failures in customer due diligence and transaction limitations. Besides the fine, an institutional warning was issued along with personal sanctions against senior executives at Korbit, as announced on Wednesday.
This enforcement action comes amidst ongoing discussions for Mirae Asset, a Seoul-based financial conglomerate with no previous involvement in the cryptocurrency sector, to acquire a majority stake in Korbit, a deal reportedly valued at up to $98 million.
The FIU also indicated that it plans to impose sanctions on relevant executives and staff, including a warning for the CEO and a reprimand for the individual responsible for reporting, according to the regulator’s statement.
The FIU conducted an on-site inspection of Korbit in October 2024 and identified numerous violations regarding anti-money laundering (AML) and know-your-customer (KYC) verification procedures.
It emphasized that this enforcement action is part of its initiative to “enhance anti-money laundering capabilities and legal compliance systems within businesses to foster public trust in the virtual asset market.” In November, the FIU had already fined Dunamu, operator of Upbit, South Korea’s largest cryptocurrency exchange, with a $25 million penalty and other sanctions for similar infractions.
