Korbit, the South Korean crypto exchange in talks to be bought by Mirae Asset, was 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 the lapse of customer due diligence and transaction restrictions. In addition to the fine, it imposed an institutional warning and issued personal disciplinary measures against senior Korbit executives, it said on Wednesday.
The enforcement action comes as Mirae Asset, a Seoul-based financial group with no previous involvement in crypto-related businesses, is in talks to acquire a majority stake in Korbit in a deal reported to be worth as much as $98 million.
The FIU has also “decided to impose sanctions on related managers and employees, including a warning to the CEO and a reprimand to the person responsible for reporting,” the regulator’s announcement said.
The FIU said it conducted an on-site inspection of Korbit in October 2024 and found thousands of anti-money laundering (AML) and know-your-customer (KYC) violations.
It noted that the enforcement action is part of its efforts to “strengthen anti-money laundering capabilities and corporate legal compliance systems so that the virtual asset market can grow with public confidence”. In November, FIU issued Dunamu, the operator of Upbit, South Korea’s largest crypto exchange, a $25 million fine and other sanctions for similar violations.
