Korbit Exchange Indicted by South Korea’s FIU Over AML Violation

Core Insights - South Korea's Financial Intelligence Unit (FIU) has indicted the Korbit exchange for violations of the Specific Financial Information Act, including failures in customer due diligence and transaction restrictions [1][2] - The FIU imposed a fine of KRW 2.73 billion (approximately $1.88 million) on Korbit for anti-money laundering (AML) violations related to non-fungible tokens (NFTs) [2] - The CEO of Korbit received a caution, and the reporting officer was reprimanded, indicating ongoing scrutiny of the exchange by South Korean regulators [3] Regulatory Actions - The FIU is conducting follow-up inspections on other crypto exchanges, with GOPAX expected to be next in line for penalties based on a "first-in, first-out" method [3][4] - The FIU plans to issue prior notices of fines for violations related to customer identification and transaction restrictions, allowing Korbit 10 days to respond before finalizing the fine [4] Future Strategies - The FIU aims to strengthen AML capabilities and legal compliance systems among crypto firms to foster public trust in the virtual asset market [5][6] - There are rumors of Bybit considering acquiring Korbit, starting with a 31.5% stake currently held by SK Planet, while NXC, the parent company of Nexon, owns a 60.5% stake [6]