Regulatory Penalty Comes as Korbit Holds Acquisition Talks With Mirae Asset
South Korean cryptocurrency exchange Korbit has been fined 2.73 billion won, or approximately $1.9 million, after regulators identified widespread failures in anti-money laundering (AML) and customer verification controls. The enforcement action arrives at a sensitive moment as the exchange is reportedly in discussions over a potential acquisition by a major financial group.
The country’s Financial Intelligence Unit (FIU) stated that Korbit violated core provisions of the Special Financial Transactions Act, citing deficiencies in customer due diligence, know-your-customer (KYC) procedures, and transaction monitoring. Beyond the monetary fine, regulators issued an institutional warning and imposed disciplinary measures on senior executives, including a formal warning to the chief executive.
The violations were uncovered during an on-site inspection conducted in October 2024, where authorities reported finding thousands of compliance breaches related to AML and KYC requirements.
Impact on Acquisition Talks
The penalty coincides with ongoing negotiations in which Mirae Asset is reportedly considering acquiring a majority stake in Korbit, with the deal estimated at up to $98 million. The development adds regulatory scrutiny to the transaction, as the potential buyer has no prior exposure to crypto-related businesses.
Regulators emphasized that the action is part of broader efforts to strengthen compliance and restore public trust in the virtual asset market. Similar enforcement measures have been taken against other domestic exchanges in recent months.The Korbit fine underscores South Korea’s increasingly strict approach to crypto compliance, reinforcing that regulatory standards remain a central factor for exchanges and investors alike.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.