Korbit, the South Korean cryptocurrency exchange in talks to be acquired by Mirae Asset, has been fined 2.73 billion won ($1.9 million) by the country’s regulator for multiple anti-money laundering and customer verification violations.
The Financial Intelligence Unit said the exchange violated key provisions of the country’s special financial transactions law, including breaches of customer due diligence and restrictions on transactions. In addition to the fine, she imposed an institutional warning and took personal disciplinary measures against senior Korbit executives, she announced Wednesday.
The enforcement action comes as Mirae Asset, a Seoul-based financial group with no prior involvement in crypto-related activities, is in talks to acquire a majority stake in Korbit in a deal estimated to be worth $98 million.
The FIU also “decided to impose sanctions on the directors and employees concerned, including a warning to the CEO and a reprimand to the person responsible for reporting,” the regulator’s notice said.
The FIU said it conducted an on-site inspection of Korbit in October 2024 and discovered thousands of anti-money laundering (AML) and know-your-customer (KYC) verification violations.
It noted that the enforcement measures are part of its efforts to “strengthen companies’ anti-money laundering capabilities and legal compliance systems so that the virtual asset market can grow with public trust.” In November, the FIU fined Dunamu, the operator of Upbit, South Korea’s largest crypto exchange, $25 million and other sanctions for similar violations.
