Korbit was warned and fined 2.73 billion won (approximately $2.08 million) by South Korea's financial intelligence agency for violating anti-money laundering laws related to cryptocurrencies.
According to information from December 31st, the violations mentioned include tens of thousands of breaches of customer due diligence obligations and transactions with unregistered overseas virtual asset service providers.
- Korbit was fined 2.73 billion won and given a warning for violating the specific financial information law.
- The FIU cited approximately 22,000 violations of customer due diligence obligations and transaction restrictions.
- Nineteen unregistered transactions with foreign VASPs were detected; FIU increases AML monitoring.
Penalties and disciplinary measures
The Korea Financial Intelligence Unit (FIU) issued a warning and fined Korbit 2.73 billion won (approximately $2.08 million) for violating the Specific Financial Information Act.
In addition to fines, company representatives and individuals responsible for reporting violations also received warnings and disciplinary action. The information indicates that the regulatory body is not only targeting organizations but also extending compliance responsibility to individuals directly involved in reporting and risk control activities.
This move reflects a tightening approach to AML compliance in the cryptocurrency industry, particularly for virtual asset service providers (VASPs) operating in South Korea.
Details of AML violations: KYC and transactions with foreign VASPs.
The FIU stated that Korbit had approximately 22,000 violations of customer due diligence and transaction restriction obligations, along with 19 unregistered transactions with foreign VASPs.
Customer due diligence errors are often associated with requirements for identifying, verifying, and monitoring customer risk during the use of cryptocurrency services. The recording of approximately 22,000 violations indicates the scale of the problem lies in operational processes and internal controls.
With 19 transactions involving unregistered overseas VASPs, the FIU emphasized its focus on tightly controlling cross-border transaction flows. The agency stated that it will continue to strengthen its monitoring of AML compliance.
