South Korea Cracks Down on Crypto Exchanges Amid Security Concerns

South Korea's Financial Intelligence Unit (FIU) is preparing heavy sanctions against major cryptocurrency exchanges including Upbit, Korbit, GOPAX, Bithumb, and Coinone. The penalties follow year-long inspections revealing systemic failures in Know Your Customer (KYC) protocols and anti-money laundering (AML) reporting.

Dunamu, operator of Upbit, has already been hit with 35.2 billion won ($26 million) in fines alongside CEO disciplinary warnings and a three-month operational suspension. Industry sources indicate similar penalties await other exchanges as regulators employ a 'first-in, first-out' enforcement approach.

The crackdown coincides with alarming security revelations. Up to 40% of crypto job applicants may be North Korean operatives using sophisticated identity forgery, according to cybersecurity analysts. This development raises profound concerns for global firms operating in digital assets.

Meanwhile, Japan's parallel MOVE to recognize over 100 tokens as regulated financial products by 2026 creates a regional dichotomy. Where Seoul tightens, Tokyo liberalizes - setting the stage for Asia's evolving crypto power dynamics.