FIU Moves Toward Issuing New Sanctions Against Major South Korean Crypto Exchanges After AML Insp...

FIU moves toward new sanctions as major South Korean crypto exchanges face growing anti money laundering scrutiny.

Regulatory pressure rises while inspections continue and fines may reach high levels across multiple trading platforms.

Uncertainty grows over the delayed crypto tax plan as policymakers balance oversight with support for digital assets.

South Korea’s financial watchdog, FIU, is preparing new sanctions for major domestic crypto exchanges. The action follows extensive inspections that assess compliance with anti-money laundering rules

Authorities aim to address gaps that they believe could threaten the stability of the country’s virtual asset market.

Progress Through Inspection Sequence

The Korea Financial Intelligence Unit continues to move through cases based on the order of its on-site reviews. This sequence places Dunamu first, followed by Korbit, GOPAX, Bithumb, and Coinone. Inspectors examined Know Your Customer procedures and the handling of suspicious transactions at each exchange. Most field reviews are now complete, and legal assessments are underway.

Regulators sanctioned Dunamu earlier this year after identifying breaches of the Special Financial Transactions Act. The action included a warning for the chief executive and a temporary suspension of new customer deposits and withdrawals. Authorities later confirmed a fine that totaled 35.2 billion won. Similar reviews are underway for the remaining exchanges, and markets expect decisions to appear in a similar order.

Potential Delays and Additional Reviews

Bithumb could face a delay in its place within the queue. Officials conducted an additional on-site review of the platform’s order book operations. The process mirrors the Dunamu approach, where personal and institutional sanctions were reviewed before the fine was set. This extra step may extend the timeline before regulators confirm the final penalties. Earlier this year, FIU penalized Upbit for accepting photocopied IDs and failing proper KYC verification.

Moreover, Upbit faced investigation in South Korea for over 500,000 KYC breaches, risking $34B fines and a six-month suspension on new registrations. The FIU is expected to advance with decisions for Korbit, GOPAX, Bithumb, and Coinone in the coming months. Observers anticipate that findings will align across the exchanges because inspectors evaluated the same anti-money laundering controls.

Penalty Expectations and Regulatory Pressure

Authorities are preparing further sanctions that may include personal penalties, institutional warnings, and sizable fines. Market participants expect total financial penalties across the group to reach into the hundreds of billions of won. The final amounts will depend on each violation and its severity. With several cases still open, the FIU is not likely to complete its sanctions schedule this year. Most remaining actions may extend into the first half of next year, which will keep regulatory pressure elevated during a period of global tightening in crypto oversight.

Policy Uncertainty and Industry Response

The enforcement push coincides with renewed uncertainty surrounding the nation’s crypto tax schedule. Officials have noted that the current infrastructure and guidance are not prepared for the 2027 deadline. This follows years of planning, debate, repeated postponements, and discussions about another delay.

Meanwhile, policymakers aim to show receptiveness toward innovation. The ruling party has formed a new task force focused on digital asset and blockchain policy. The group intends to explore measures that support development while authorities continue to refine the regulatory landscape.