South Korea Fines Crypto Exchange Korbit $1.9M for AML Violations
South Korea’s Financial Intelligence Unit (FIU) has taken a firm stance against non-compliance in the cryptocurrency sector. In the latest development, the FIU has imposed a significant fine of 2.73 billion won on the crypto exchange, Korbit, for violating anti-money laundering (AML) regulations.
Significantly, this enforcement action is part of South Korea’s broader efforts to strengthen AML controls at domestic crypto exchanges. The crackdown is also a testament to South Korea’s commitment to regulating the crypto space and preventing illicit activities.
South Korea’s Crypto Crackdown: Korbit Faces Fine
In a pivotal move, South Korea’s financial watchdog has imposed a fine $2.73 billion won, equivalent to $1.9 million, on Korbit, a cryptocurrency exchange. This penalty is for breaching customer identification and trading restrictions.
According to official reports on Korbit scrutiny, the Korea Financial Intelligence Unit (KoFIU) convened a sanctions committee today and decided to impose the fine. While the Korbit CEO received a warning from officials, executives in charge of reporting were reprimanded.
Notably, the move follows an October 2024 inspection by the Korea Financial Intelligence Unit (FIU) under the Financial Services Commission. The commission is currently executing a comprehensive review of anti-money laundering controls at domestic cryptocurrency exchanges, including Korbit.
Compliance Failures Put Korbit in Hot Seat
Reportedly, Korbit was found to have breached regulatory requirements in several areas. The KoFIU has given the exchange over 10 days to respond to the sanctions decision before finalizing the fine.
The company reportedly allowed roughly 22,000 trades without proper customer identification, engaging in 19 transactions with unregistered overseas exchange operators, and failing to conduct risk assessments in 655 cases. The cases also encompassed a range of issues, such as unclear or missing identity documents, incomplete address details, and the use of outdated documents for reverification. This highlights the exchange’s weaknesses in customer identification processes.
How Will This Affect the Mirae Asset Group Deal?
This regulatory action may impact Korbit’s potential stake sale talks with Mirae Asset Group, which is reportedly considering acquiring stakes from major shareholders. Mirae Asset Group, a South Korean financial powerhouse, has been reportedly in talks with Korbit for a potential acquisition.
In a deal worth $70-$100 million, the financial group has been planning to purchase the crypto exchange. Sources familiar with the matter stated,
“A potential bid for Korbit is in line with Park’s vision for digital asset-based financial innovation. Korbit has historically had a limited presence, but Mirae Asset Financial Group’s decades of expertise could allow it to pursue a differentiated strategy.”
Currently, Nexon, the gaming giant, is the majority stakeholder in Korbit, owning about 6.05% of shares through its holding company NXC. SK Planet holds a significant minority stake of 31.5%, acquired in a 90 billion won investment in 2021. Despite being South Korea’s first crypto exchange, Korbit’s market share has dwindled to less than 1% of domestic trading volume.
This acquisition talk is part of a larger trend of traditional financial companies expanding into crypto. Earlier in 2025, IG Group acquired Independent Reserve for 87 million euro, while Robinhood bought Bitstamp to enter institutional crypto services. Meanwhile, Crypto.com acquired a regulated broker to offer CFDs in Europe.
