Korbit fined W2.73b over compliance breaches

(Korbit)

South Korea’s financial authorities have fined crypto exchange Korbit 2.73 billion won ($1.9 million) for violations of customer identification and trading restriction rules, regulatory officials said Wednesday.

The sanctions followed an on-site inspection on Korbit conducted in October 2024 by the Korea Financial Intelligence Unit under the Financial Services Commission, part of a comprehensive review of anti-money laundering controls at domestic crypto exchanges.

Korbit is one of South Korea’s fourth-ranking crypto exchanges by trading volume.

The KoFIU convened a sanctions committee Wednesday and decided on the penalties. In addition to the fine, the regulator imposed personnel sanctions, including a warning for Korbit’s chief executive and reprimands for officials responsible for reporting obligations.

Regulators said Korbit allowed trading in about 22,000 cases involving customers who had not completed required identification procedures. The exchange was also cited for 19 cryptocurrency transactions with three unregistered overseas exchange operators, as well as 655 violations related to failures to conduct required risk assessments.

The KoFIU will give Korbit more than 10 days to submit its views on the sanctions decision before determining the final amount of the fine.

The penalties could complicate Korbit’s plans for a potential stake sale that has recently circulated in the industry. Korbit is said to be in talks with Mirae Asset Group, with market reports indicating the financial conglomerate is considering acquiring stakes held by major shareholders through its unit Mirae Asset Consulting.