South Korea's FIU fines Korbit approximately $1.88 million and issues 'institutional warning'

According to reports, South Korea's Financial Intelligence Unit (FIU) announced that it has decided to issue an 'institutional warning' and impose a fine of 27.3 billion Korean won (approximately $1.88 million) on the cryptocurrency exchange Korbit for violating anti-money laundering (AML) obligations under the Specific Financial Information Act. Additionally, FIU issued a 'caution' to its representative director and a 'reprimand' to the person responsible for AML reports. The sanctions stem from three major violations discovered during an on-site inspection of Korbit by FIU from October 16 to October 29, 2024: approximately 22,000 cases of non-compliance with customer due diligence (CDD) and transaction restrictions, including accepting vague identification documents, allowing transactions with incomplete customer information, and failing to periodically confirm customer identities; conducting 19 asset transfer transactions with three undisclosed overseas virtual asset service providers; and failing to conduct money laundering risk assessments as required before listing 655 new assets such as NFTs.

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