South Korea’s FIU is preparing major sanctions against multiple crypto exchanges after finding widespread violations of anti-money laundering laws.
South Korea’s Financial Intelligence Unit is tightening its grip on the crypto industry, with financial regulators preparing tough penalties for nearly every major exchange.
The law enforcement agency says the scrutiny and punishments are for breaking anti-money laundering rules, especially know-your-customer violations, and not reporting suspicious transactions.
According to a local outlet, the FIU is applying a “first-in, first-out” method, which means that the exchanges inspected earlier will be punished first.
FIU has already fined Dunamu, the operator of Upbit, which is the largest crypto exchange in South Korea, for 35.2 billion KRW, worth roughly $24.3 million.
Leading crypto exchanges Korbit, GOPAX, Bithumb, and Coinone are reportedly next to be penalized in the written order. Notably, Bithumb’s sanctions might be imposed later due to a recent inspection, the report added.
According to the local report, the penalties might include institutional restrictions, personnel sanctions, and large fines. For instance, the FIU penalized Dunamo with a disciplinary warning for its CEO, a three-month ban on new customer deposits/withdrawals, and a $24.3 million fine.
The cash-based penalties could reach hundreds of billions of won each, depending on how serious their violations are.
Korea’s Rising Market
South Korea is one of the largest and fastest-growing crypto markets in the Asia-Pacific region.
According to Chainalysis research, stablecoins and professional traders have been leading the South Korean crypto market between July 2024 and June 2025. Stablecoin purchases with the Korean won reached $64 billion in the mentioned period.
Top crypto exchanges like Binance and Bybit are also planning to enter the Korean crypto market.
In October, Binance received the green light to acquire a majority stake in GOPAX to return to the market after two years. On Nov. 10, Coinspeaker reported that Bybit has also been planning to buy Korbit.
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