Korbit Fined $1.9 Million by South Korea Regulator Amid Mirae Asset Acquisition Talks

South Korean cryptocurrency exchange Korbit has been fined 2.73 billion won (approximately $1.9 million) by the country’s Financial Intelligence Unit (FIU) for multiple violations related to anti-money laundering (AML) and customer verification requirements. The penalty comes at a sensitive time, as Korbit is reportedly in talks with Mirae Asset over a potential acquisition that could value the exchange at up to $98 million.

According to the FIU, Korbit breached key provisions of South Korea’s Special Financial Transactions Act, including failures in customer due diligence, know-your-customer (KYC) procedures, and transaction restriction obligations. In addition to the monetary fine, the regulator imposed an institutional warning on the exchange and issued disciplinary actions against several senior executives. These measures include a formal warning to Korbit’s chief executive officer and a reprimand for the individual responsible for regulatory reporting.

The enforcement action followed an on-site inspection conducted by the FIU in October 2024. During the inspection, regulators identified thousands of AML and KYC-related violations, highlighting systemic weaknesses in Korbit’s compliance framework. The FIU stated that these lapses undermined efforts to prevent illicit financial activity and failed to meet the standards required of licensed virtual asset service providers in South Korea.

The regulator emphasized that the sanctions are part of a broader push to strengthen AML capabilities and improve legal compliance across the domestic crypto industry. The goal, according to the FIU, is to support the sustainable growth of the virtual asset market while maintaining public trust and financial integrity. In November, the FIU took similar action against Dunamu, the operator of Upbit, South Korea’s largest crypto exchange, imposing a $25 million fine and additional sanctions for comparable compliance failures.

The case also casts a spotlight on Korbit’s ongoing acquisition discussions with Mirae Asset, a major Seoul-based financial group with no previous exposure to crypto-related businesses. While the talks reportedly involve the purchase of a majority stake, the regulatory penalties may factor into due diligence considerations as South Korea continues to tighten oversight of cryptocurrency exchanges.