Korbit Exchange Indicted by South Korea’s FIU for AML Violations

South Korea’s Financial Intelligence Unit (FIU) has indicted the Korbit exchange following an inspection.

Korbit violated the Specific Financial Information Act, including failures in customer due diligence and transaction restrictions.
Dealings with unreported overseas Virtual Asset Service Providers (VASPs) were identified as violations.
The FIU imposed a KRW 2.73 billion fine ($1.88 million) and institutional warning on Korbit.
The CEO received a caution, and the reporting officer was reprimanded.
Korbit is expected to submit its opinions within 10 days before the fine amount is finalized.

Other exchanges like GOPAX, Bithumb, and Coinone are also facing scrutiny under a "first-in, first-out" inspection method.

FIU plans to issue prior notices of fines for customer identification and transaction restriction violations.
Sanctions will be strictly imposed for serious violations of financial laws.
The FIU aims to enhance AML capabilities and legal compliance among operators.

Rumors suggest that Bybit is considering acquiring Korbit, starting with a 31.5% stake from SK Planet and potentially increasing ownership.