Korbit, a virtual asset platform in South Korea, fined $20,000 for non-compliance; regulators upgrade AML review

2025-12-31 09:32:11

【Chain News】South Korea’s Financial Intelligence Unit (FIU) has taken strong action at the end of the year. Virtual asset service provider Korbit was fined 27.3 billion KRW (approximately $208 million) for violating the “Specific Financial Information Act,” and warnings and disciplinary actions were issued to the company’s representatives and reporting officers.

Where is the problem? There are mainly two issues: first, inadequate enforcement of customer identification (KYC) and transaction restriction obligations, with a total of 22,000 violations; second, having conducted transactions with 19 unregistered overseas virtual asset service providers. Both issues directly hit the core of AML (Anti-Money Laundering) compliance.

The FIU’s stance is very clear — this is not a passing trend, and they will continue to strengthen AML compliance supervision in the virtual asset industry. This serves as a warning to all platforms operating in South Korea: KYC verification and counterparty review are fundamental tasks that cannot be neglected, or else they face not only hefty fines but also management accountability. The compliance threshold for the virtual asset industry is rising globally, and this is a major trend.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
5
Repost
Share

Comment

0/400

ConsensusBot

· 10h ago

Another big scoop, Korea really doesn't hold back here 2.08 million USD is just the appetizer, management will all receive warning sanctions Poor KYC compliance really makes it unplayable, 22,000 violation records are outrageous Having dealings with illegal platforms means instant goodbye, regulators are serious this time Compliance costs are getting higher and higher, everyone

View OriginalReply0

FromMinerToFarmer

· 10h ago

2.2 million USD? How many users' fees would it take to cover that, haha Korbit really messed up this time. If you don't do KYC properly, you dare to collude with unregulated exchanges Korean regulators are serious this time. Other platforms should be nervous It feels like AML thresholds are getting higher and higher. Small exchanges are having a tough time 22,000 violation records. That must be a lot of stuff to store, right?

View OriginalReply0

SmartContractWorker

· 10h ago

2.08 million USD? That's a pretty harsh fine, Korbit really stepped into a trap this time. 22,000 violation records, how careless must one be to accumulate that many... KYC is now under strict regulatory scrutiny, daring to be casual about it is really risky. Trading on unregistered platforms is a big taboo, no wonder they were heavily fined. Compliance is not optional; all platforms should be more cautious. Other Korean platforms should be nervous now, a chain reaction is coming. Anti-money laundering measures leave no room for bargaining; no one can escape. Management has also been disciplined, it seems FIU is serious this time. Korbit has set a bad example for the entire industry. By the way, how many other platforms are also doing superficial KYC reviews...

View OriginalReply0

tx_or_didn't_happen

· 10h ago

A fine of 2.08 million USD is considered light; the main issue is that the 22,000 KYC violations are just too outrageous—this is not just an oversight. Daring to have dealings with 19 black-market platforms and not reporting them—Korbit's move is truly bold. This time, Korea's FIU is serious; other platforms might not have a good time ahead. Compliance really can't be avoided; sooner or later, you'll have to spend this money. But on the other hand, how many platforms are still finding loopholes now?

View OriginalReply0

LuckyHashValue

· 11h ago

South Korea's crackdown this time is really fierce. A fine of only 2.08 million USD, and management will also be held accountable… It seems platforms really need to take KYC seriously. No way, 22,000 violation records? How careless is Korbit? Other exchanges should be panicking now. The FIU says they will continue investigations, and no one can escape. You can be caught even for trading with unregistered overseas platforms. Regulatory scrutiny is indeed getting stricter. So small platforms really have no way out now… With such high compliance costs, who can bear it? Why does it feel like Korea's financial authorities have recently been especially fond of virtual assets… It’s this one, that one… Speaking of which, AML compliance really can’t be lazy about. No one wants to become the next Korbit.

View OriginalReply0