Korbit Fined $1.90 Million for Compliance Lapses by South Korea

South Korea's Financial Intelligence Unit (FIU) fined crypto exchange Korbit ₩2.73 billion ($1.90 million) for compliance failures.

Inspection from October 16 to 29, 2024, revealed nearly 22,000 anti-money laundering (AML) and know-your-customer (KYC) rule breaches.
Lapses included allowing trades before full customer verification and accepting incomplete identity documents.
Nineteen overseas transfers involved unregistered foreign virtual asset service providers, violating Korean law.
Failure to conduct required risk checks cited in 655 cases, including nonfungible token services.

Corporate actions included a formal caution to the CEO and reprimand of the compliance officer, alongside an institutional warning.

The FIU aims to align exchanges with international AML standards. Korbit is currently valued at around ₩140 billion ($97–$98 million) and is in discussions with Mirae Asset Group for a potential deal.

The case may prompt internal reviews across the industry to prevent similar lapses, as exchanges face increased regulatory scrutiny.

Korbit must now demonstrate corrective measures to avoid further penalties. The FIU confirmed the sanction on December 31, 2025.