South Korea FIU May Fine 5 Crypto Exchanges Over 35 Billion Won Lapses
South Korea's Financial Intelligence Unit (FIU) is stepping up enforcement against local crypto exchanges after finding significant...
Quick overview
- South Korea's Financial Intelligence Unit (FIU) is intensifying enforcement against local crypto exchanges due to significant gaps in anti-money laundering (AML) and know-your-customer (KYC) procedures.
- Dunamu, the operator of Upbit, faced a three-month ban on new customers and a fine of 35.2 billion won after failing to comply with KYC and AML checks.
- The FIU is now investigating other major exchanges like Korbit and Bithumb, with potential fines totaling hundreds of billions of won expected by mid-2026.
- In addition to local exchanges, the FIU has blocked at least 14 foreign exchanges for failing to register, indicating a broader commitment to tightening crypto regulations.
South Korea’s Financial Intelligence Unit (FIU) is stepping up enforcement against local crypto exchanges after finding significant gaps in anti-money laundering (AML) and know-your-customer (KYC) procedures. Sources on the issue have let it slip that the FIU is getting ready to hit exchanges that don’t shape up or have been flouting the rules.
It all started with Dunamu, the company behind Upbit, South Korea’s biggest crypto platform. After the FIU took a closer look, it found that millions of customers had fallen through the cracks in KYC and AML checks. As a result, Dunamu was given a three-month ban on taking new customers, and they had to stump up a 35.2 billion won fine.
Compliance Failures Could Hit Others
Now, the FIU is looking into other major exchanges, including Korbit, GOPAX, Bithumb, and Coinone. The insiders in the industry reckon these platforms could be in for a similar rough ride as they all got treated to the same super strict criteria:
🇰🇷S. KOREA FIU TARGETS TOP EXCHANGES
South Korea’s Financial Intelligence Unit (FIU) is set to issue major penalties after citing widespread compliance failures across Korbit, Gopax, Bithumb, and Coinone. pic.twitter.com/tZWZll3ePq
— Coin Bureau (@coinbureau) November 24, 2025
- Inspectors are coming in to ensure they’re properly following KYC and AML rules.
- Ensuring they have the right systems in place to prevent money laundering.
- Checking the internal framework they use to make sure they’re doing things by the book
The officials are expected to dish out the sanctions in the order they visited the places, so Korbit is next up. Industry analysts reckon the total fines for all the exchanges they’re investigating could add up to hundreds of billions of won, and they’re expecting the final decisions on this in mid-2026.
Broader Market Oversight
It’s not just the domestic exchanges that are getting a hard time. Earlier this year, the FIU had to block at least 14 foreign exchanges, including KuCoin, because they hadn’t registered with the FIU. The regulators blocked access to their websites and apps to stop locals from getting burned – they said the problem was not being straightforward about who was behind the exchanges and not doing enough to ensure users knew who was using the sites.
🚨SOUTH KOREA CRACKDOWN!!!
South Korean regulators are hitting several exchanges with sanctions & penalties for AML violations.
First it was Upbit earlier this year
Now Bithumb, Coinone, Korbit, and Gopax are next in line.
Fines are expected in the tens of billions of KRW!! pic.twitter.com/wmXzOjtQNs
— Kyle Chassé / DD🐸 (@Kylechasse) November 24, 2025
Other things the regulators are doing include:
- Looking at the way domestic exchanges charge their fees to make it clearer for customers.
- Suspended crypto lending services for a while because it was a bit of a risk.
These changes show that Seoul is really committed to tightening crypto regulation to protect users and keep the industry stable. People watching the market say the FIU’s new proactive approach is a clear sign they’re going to be a lot tougher in the next few years, and that anyone who doesn’t play by the rules is going to get caught out.
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