South Korea’s fourth-largest exchange, Korbit, was fined $1.9 million by the FIU on December 31, 2025, for AML and KYC rule violations. Issues included 22,000 unverified users, dealings with unregistered foreign platforms, and inadequate risk checks. Penalties include a fine, a warning to the exchange, and the CEO.

The FIU found Korbit in violation of the Specific Financial Information Act, similar to Upbit’s earlier violations. Korbit was fined $1.88 million and given a caution to the CEO and a reprimand to the reporting officer. Failures included customer due diligence, transaction restrictions, dealings with unreported overseas VASPs, and AML risk assessments for NFTs.

Korbit breached AML/KYC rules, allowing trading without proper customer identification, improper transaction limits, and dealings with unregistered overseas VASPs. There were also 655 violations related to inadequate money laundering risk assessments, particularly for NFTs. The FIU has been inspecting major cryptocurrency exchanges to enforce AML and KYC regulations.

The FIU imposed fines on major exchanges in a specific order based on registration dates, beginning with Dunamu in August 2024, followed by Korbit in October 2024. The latest action follows earlier fines on Upbit, which faced a $25 million penalty for AML and KYC breaches, including failures to verify customer identities and unreported suspicious transactions. Upbit also faced a three-month suspension of virtual asset transfers for new consumers.

Dunamu, Upbit’s operator, is analyzing the FIU’s findings and considering an appeal. Korbit, South Korea’s fourth-largest exchange, was inspected by the FIU starting in October 2024, leading to a preliminary punishment notification on Dec. 18, 2025, and a $1.9 million fine on the final day of the year.

Read more at Yahoo Finance: Korbit Joins Upbit Under Fire as South Korea Hands Down $1.9M AML Penalty