Korbit Crypto Exchange Fined $1.9M for AML and KYC Violations by South Korean Regulators

South Korean cryptocurrency exchange Korbit has been hit with a substantial fine of 2.45 billion won (approximately $1.9 million USD). The penalty was levied by the country's Financial Intelligence Unit (FIU) for significant breaches of anti-money laundering (AML) regulations and customer verification (KYC) protocols. The regulatory action underscores the South Korean government's intensified scrutiny of the digital asset sector. Authorities found that Korbit failed to properly report suspicious transactions and did not adequately verify the identities of its customers, a critical requirement under local financial security laws. This enforcement signals a continued crackdown on non-compliance within the cryptocurrency industry as regulators aim to enhance investor protection and prevent illicit financial activities. While the fine represents a major compliance failure for Korbit, one of Korea's oldest exchanges, the company has stated it will not appeal the decision. Korbit has committed to strengthening its internal monitoring systems and fully cooperating with regulatory standards to prevent future violations.