Korbit has been indicted by the Financial Intelligence Unit (FIU) in South Korea, over AML rule violations.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
2 mins read
South Korea’s Financial Intelligence Unit (FIU) has indicted the Korbit exchange after a recently conducted comprehensive inspection.
The result of this exercise showed that the cryptocurrency exchange violated the Specific Financial Information Act.
This includes failures in customer due diligence, transaction restrictions, and dealings with unreported overseas VASPs.
According to Wu Blockchain, an anti-money laundering (AML) inspection discovered that Korbit had fallen short of the Specific Financial Information Act.
South Korea’s Financial Intelligence Unit (FIU) said an AML inspection found Korbit in violation of the Specific Financial Information Act, including failures in customer due diligence, transaction restrictions, dealings with unreported overseas VASPs, and AML risk assessments…
— Wu Blockchain (@WuBlockchain) December 31, 2025
It violated AML risk assessments for non-fungible tokens (NFTs). As a penalty for this offense, the FIU has imposed an institutional warning and a KRW 2.73 billion fine, which is equivalent to $1.88 million.
The CEO was also issued a caution, while the reporting officer was reprimanded. It is worth noting that Korbit has been under the radar of South Korean regulators for a while.
A month ago, the FIU was preparing major penalties for nearly every top crypto exchange after months of AML inspections.
Apart from Korbit, GOPAX, Bithumb, and Coinone were also on the list, based on a “first-in, first-out” method.
This means that the exchanges inspected earlier will be punished first. As a result, GOPAX should be next on the FIU’s agenda.
FIU stated on its website that it will issue prior notices of fines for violations of customer identification and transaction restriction obligations by the exchange.
Korbit will be allowed at least 10 days to submit its opinions. After that, the fine amount will be finalized based on the submitted responses.
Going forward, the FIU is looking to sequentially conduct follow-up measures for the other on-site inspections.
As a warning to other crypto firms, the regulator will strictly impose sanctions on serious violations of special financial laws. It has made it clear that it is not relenting in its efforts to strengthen operators’ AML capabilities.
As a way of supporting the virtual asset market to grow with public trust, the FIU will also strengthen the money laundering capabilities and legal compliance systems of firms.
Meanwhile, it is rumored that Bybit is considering the acquisition of Korbit. It has met with Korbit’s management and intends to start with a 31.5% stake, which belongs to SK Planet. Another 60.5% stake is owned by NXC, the parent company of Nexon.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
