Crypto exchange Korbit accepts regulator’s $2m anti-money laundering violations fine

Core Viewpoint - Korbit, a South Korean crypto exchange, will not appeal a fine of nearly $2 million for failing to enforce anti-money laundering protocols, which was imposed by the Financial Intelligence Unit following an investigation that revealed multiple violations [1][2]. Regulatory Actions - The Financial Intelligence Unit's investigation in October 2024 uncovered around 22,000 violations at Korbit, including 12,800 instances of accepting poorly copied ID documents and customer registrations without residential addresses [6][7]. - The agency also found that Korbit allowed numerous individuals who had not completed full know-your-customer checks to trade crypto and conducted transfers with unregistered overseas crypto service providers [7]. Financial Impact - The fine represents a significant setback for Korbit, which is South Korea's first crypto exchange and was once a market leader in the Bitcoin-won market [2]. - Korbit's average daily trading volume has decreased to just above $12 million this year, accounting for only 0.5% of the South Korean market [3]. Ownership Changes - Korbit is preparing for a change in ownership, with Mirae Asset nearing a takeover deal valued between $68 million and $95 million, currently owned by Nexon through its holding company NXC and a subsidiary of SK [4][5]. - A memorandum of understanding has reportedly been sealed between Mirae Asset and the shareholders of NXC and SK, although finer details of the deal are still pending [4][5]. Compliance Measures - Following the inspection, Korbit stated that it has "faithfully completed all of the corrective actions" recommended by the Financial Intelligence Unit in its post-inspection report [8].