Korea’s FIU Advances Enforcement Actions on Major Exchanges
- South Korea prepares new sanctions as regulators target crypto exchanges over AML failures.
- FIU advances cases in inspection order, with major platforms awaiting final penalty decisions.
- Ongoing enforcement and tax delays add pressure to South Korea’s evolving crypto sector.
South Korea is preparing a new round of sanctions against major virtual asset exchanges as regulators expand their crackdown on anti-money laundering failures. Officials highlighted that the measures are moving forward as part of a structured review process that began after on-site inspections. The action aims to address gaps that authorities believe could undermine the integrity of the country’s rapidly growing crypto market.
Financial regulators plan to issue individual and institutional penalties. They would also impose fines on trading platforms that violated anti-money laundering rules. A local report said the Korea Financial Intelligence Unit (FIU) is advancing cases in the order of its completed inspections. This approach allows the agency to maintain a consistent review sequence.
FIU Advances Sanctions Timeline for Major South Korean Exchanges
The FIU already sanctioned Dunamu, the operator of Upbit. It is now preparing to move through decisions involving Korbit, GOPAX, Bithumb, and Coinone. These exchanges underwent inspections focused on Know Your Customer procedures and the handling of suspicious transaction reports. Most field inspections have concluded, and legal assessments are in progress.
The order of enforcement is expected to reflect the order of inspections. Dunamu was reviewed in August last year. Korbit followed in October. GOPAX came next in December. Bithumb was reviewed in March this year. Coinone’s inspection took place in April. This timeline sets expectations for the order in which sanctions may be delivered.
Bithumb may see its position in the queue shift. The exchange underwent an additional on-site review of its order book operations. This pushed back parts of its evaluation. Regulators said the process would mirror the steps taken in the Dunamu case. That sequence involved deciding personal and institutional penalties before finalizing the size of the monetary fine.
In February, the FIU reprimanded Dunamu’s chief executive and halted the exchange’s intake and withdrawal services for three months. The enforcement action was tied to breaches of the Special Financial Transactions Act. In November, the FIU added a fine of 35.2 billion won to the sanctions.
Rising Penalties Expected as FIU Nears Final Decisions
Analysts expect similar findings across the remaining exchanges. Inspectors reviewed nearly identical anti-money laundering controls at each platform. This has raised expectations that the final outcomes may share common elements. Regulators are preparing further institutional and personnel sanctions. They are also preparing significant monetary penalties.
Market observers have said the total fines across all exchanges could reach into the hundreds of billions of won. The final figures would depend on the number and severity of violations found at each platform. Each case is undergoing legal review before decisions are finalized.
The FIU is unlikely to complete its enforcement schedule this year. Four exchanges are still awaiting decisions. Most actions are expected to conclude in the first half of next year. This would keep pressure on the sector during a period of heightened global scrutiny of crypto markets.
Related: South Korea’s FIU Reopens Door for Binance’s Comeback: Report
The enforcement drive is unfolding as South Korea faces renewed uncertainty over its planned virtual asset tax regime. The tax framework is scheduled to begin in January 2027. Officials have warned that the country remains unprepared for implementation.
The tax plan has already faced years of political debate and delays. The possibility of another postponement has returned to public discussions. Policymakers are reviewing the status of the framework as they assess the country’s readiness.
At the same time, political leaders are trying to maintain support for digital innovation. The ruling Democratic Party introduced a new task force focused on crypto policy. Officials said the group would focus on the development of blockchain and digital asset initiatives. This move comes as regulators continue to tighten oversight across the sector.
