Overview
- Korea’s Financial Intelligence Unit cited violations of customer identification and trading restriction rules under the Special Financial Transactions Act.
- Korbit received an institutional warning plus personnel sanctions, including a warning to the CEO and a reprimand for the reporting officer.
- Regulators detailed about 22,000 trades by unverified users, 19 transactions with three unregistered overseas platforms, and 655 failures in required risk assessments, including for NFTs.
- The sanctions decision remains provisional as the FIU allows Korbit more than 10 days to submit its views before the fine is finalized.
- The action lands as market reports describe talks for Mirae Asset to acquire a majority stake in Korbit in a deal reported up to about $98 million, following a broader crackdown that earlier saw Upbit operator Dunamu fined roughly $25 million.