The South Korean cryptocurrency exchange, Korbit, which is presently engaged in discussions to be acquired by Mirae Asset, has been slapped with a substantial fine of 2.73 billion won, equivalent to $1.9 million, by the country's regulatory authority. This penalty stems from multiple infractions related to anti-money laundering and customer verification. According to the Financial Intelligence Unit, Korbit failed to comply with crucial provisions of the Special Financial Transactions Act, including shortcomings in customer due diligence and transaction restrictions. In addition to the monetary penalty, the regulator has issued an institutional warning and imposed personal disciplinary actions against senior executives of Korbit.
This enforcement action coincides with Mirae Asset, a Seoul-based financial conglomerate with no prior involvement in cryptocurrency-related ventures, negotiating to purchase a majority stake in Korbit, reportedly valued at up to $98 million. The Financial Intelligence Unit has also decided to impose sanctions on related executives and employees, including a warning to the CEO and a reprimand for the individual responsible for reporting.
Following an on-site inspection of Korbit conducted in October 2024, the FIU uncovered thousands of violations pertaining to anti-money laundering (AML) and know-your-customer (KYC) verification. The regulator emphasized that this enforcement action is part of its broader efforts to enhance anti-money laundering capabilities and legal compliance systems within businesses, aiming to foster growth in the virtual asset market grounded in public trust. In a similar instance, the FIU previously issued a $25 million fine and additional sanctions to Dunamu, the operator of Upbit, South Korea's largest cryptocurrency exchange, for comparable violations in November.