South Korean Crypto Exchanges Face Heavy Penalties After FIU Inspections
South Korea’s financial regulators are preparing a new wave of penalties for major crypto exchanges, signaling the most aggressive enforcement push the industry has seen so far. After hitting Dunamu, the operator of Upbit, with a massive fine earlier this month, authorities are now turning their attention to Korbit, GOPAX, Bithumb, and Coinone.
The Korea Financial Intelligence Unit (FIU) has spent the past year conducting on-site inspections across all major trading platforms. Their focus is simple: verifying compliance with anti-money laundering rules, proper Know Your Customer checks, and suspicious transaction reporting.
Early findings suggest systemic issues similar to those at Dunamu may exist industry-wide. This raises expectations that all remaining exchanges will face penalties of similar severity.
The FIU plans to proceed methodically—exchanges inspected first will be penalized first. Dunamu’s August inspection explains its early sanction, while Korbit, GOPAX, Bithumb, and Coinone face imminent rulings after subsequent inspections. Bithumb may face additional scrutiny following a recent order-book audit.
