Korbit, a South Korean crypto exchange, was fined 2.73 billion won ($1.9 million) by the government regulator for multiple violations of anti-money laundering (AML) rules and client verification procedures. The regulator, the Financial Intelligence Unit (FIU), found that the exchange breached key provisions of the Special Financial Transactions Act, including due diligence processes and transaction restrictions. In addition to the fine, the FIU issued an institutional warning and imposed personal disciplinary measures on senior executives of the exchange.
Details of the Fine
The fine amounted to 2.73 billion won, equivalent to $1.9 million, as part of a comprehensive regulatory response to the identified violations. The FIU pointed out specific gaps in client verification and transaction monitoring that fall under the Special Financial Transactions Act. More details on previous reports about sanctions and systemic violations can be found in the article on Korbit's fine.
Sanctions Against Management
Beyond the financial penalty, the FIU announced an institutional warning and highlighted personal accountability of the leadership. The official notice stated that disciplinary actions were taken against related officials, including a warning to the CEO and a reprimand for the employee responsible for reporting. These steps aim to strengthen management’s responsibility for compliance with AML/KYC procedures.
Mirae Asset Acquisition Plans
The fine came amid ongoing negotiations by Mirae Asset to acquire a controlling stake in Korbit in a deal valued in the press at up to $98 million. Reports also note that Mirae Asset previously had no business in the crypto sector, making this acquisition atypical for the group. More on the negotiations and acquisition plans is available in the article about Mirae Asset's purchase of Korbit.
FIU Inspection and Findings
The FIU conducted an on-site inspection at Korbit in October 2024 and uncovered thousands of AML and KYC violations during the review. The regulator emphasized that these measures are part of its efforts to enhance anti-money laundering capabilities and improve legal compliance systems within businesses to maintain trust in the virtual asset market. The agency linked the sanctions to the need for stronger oversight of exchanges.
Previous Measures
The FIU has previously applied similar measures to other major platforms: in November, the regulator fined Dunamu, operator of Upbit, $25 million and imposed additional sanctions for comparable violations. This demonstrates the regulator’s ongoing focus on AML/KYC compliance in the virtual asset market and consistent enforcement of sanctions when violations are found.
Why This Matters
For miners operating one or hundreds of devices, FIU’s decisions do not directly affect equipment operation or currency mining, as sanctions target the exchange and its procedures. However, increased controls and client verification requirements may impact withdrawal conditions, fees, and transaction processing speeds on platforms where mined cryptocurrency is stored or sold.
It is also important to consider that regulatory actions affect exchanges’ reputations and their readiness to work with clients; this is reflected in KYC/AML policies and which transactions exchanges allow without additional checks. Therefore, even indirect changes in exchanges’ compliance approaches can alter your user experience when interacting with these platforms.
What to Do?
- Check KYC/AML requirements on exchanges where you hold or sell cryptocurrency and prepare documents in advance for quick verification.
- Have backup withdrawal plans: maintain accounts on multiple verified platforms and be aware that some may introduce additional checks.
- Keep records of transactions and save supporting documents—this facilitates passing checks and reduces the risk of delays in operations.
- Monitor official announcements from exchanges and regulators to respond promptly to changes in rules and procedures.