South Korea’s FIU Imposes Heavy Penalties on Crypto Exchanges for AML Failures

South Korea’s Financial Intelligence Unit (FIU) has issued penalties to major cryptocurrency exchanges, including Korbit, Gopax, Bithumb, and Coinone, following anti-money laundering failures identified during inspections. The action signals heightened regulatory scrutiny in the country’s crypto market. The penalties include fines and operational restrictions. These actions follow a precedent set by Dunamu (Upbit), which faced similar sanctions. The potential financial repercussions of these actions are significant. Exchanges may face multi-billion won fines, and their trading activity could be disrupted.