South Korea Imposes Major Penalties on Crypto Exchanges After AML Probe

South Korean regulators are cracking down on cryptocurrency exchanges following a year-long anti-money laundering investigation. The Korea Financial Intelligence Unit (FIU) has prepared sanctions against Korbit, Gopax, Bithumb, and Coinone, continuing enforcement actions that began with a $24 million fine against Upbit operator Dunamu.

Dunamu's penalty sets a stark precedent. The November 2025 fine of 35.2 billion won addressed egregious compliance failures at South Korea's largest exchange. Upbit accepted photocopied identification documents and processed 3.3 million unverified transactions while failing to report suspicious activity. The FIU imposed both financial penalties and a three-month operational suspension.

Regulators conducted systematic inspections throughout 2024-2025, with penalties being applied sequentially. This enforcement wave demonstrates South Korea's increasingly rigorous approach to cryptocurrency oversight as digital asset adoption grows.