The Korbit cryptocurrency exchange faced a decisive action from the Financial Intelligence Unit (FIU) for violations of the Anti-Money Laundering (AML) obligations under the Specific Financial Information Act. The sanction comprises an Institutional Warning and a total fine of 2.73 billion Korean won ($1.88 million), along with a Caution to its representative office and a Reprimand to the AML officer.
On-site inspections conducted October 16–29, 2024 uncovered three major breaches: roughly 22,000 CDD and transaction-restriction violations, including unclear identity documents and incomplete customer data; 19 asset transfer transactions with three undisclosed overseas virtual asset service providers; and a missing AML risk assessment prior to listing 655 new assets, notably NFTs.
Overall, the case underscores intensified regulatory oversight of cryptocurrency exchanges in Korea and highlights the imperative for robust AML controls, enhanced customer due diligence, and rigorous risk assessments when listing new assets, including NFTs.
Source: https://en.coinotag.com/breakingnews/korbit-fined-2-73-billion-won-by-korea-fiu-for-aml-violations-nft-listings-and-19-overseas-transfers
