South Korea FIU Targets Major Crypto Exchanges with Heavy Penalties

South Korea’s Financial Intelligence Unit (FIU) is intensifying its regulatory measures on the crypto industry, focusing on anti-money laundering compliance.

The FIU plans to impose penalties on major exchanges for violations related to know-your-customer regulations and failure to report suspicious activities.
The enforcement uses a “first-in, first-out” strategy, penalizing exchanges inspected earlier first.
Dunamu, operating Upbit, has already been fined 35.2 billion KRW ($24.3 million).
Korbit, GOPAX, [https://holder.io/coins/bithumb/](Bithumb), and Coinone are next in line for penalties.
Sanctions may include institutional restrictions, personnel sanctions, and substantial fines.

Despite regulatory challenges, South Korea remains a significant crypto market in Asia-Pacific:

Stablecoin purchases with the Korean won totaled $64 billion from July 2024 to June 2025.
[https://holder.io/coins/binance/](Binance) has acquired a majority stake in GOPAX to re-enter the market.
[https://holder.io/coins/bybit/](Bybit) is planning to acquire Korbit.