Particle.news
Download on the App Store

South Korea Moves Toward New Crypto Exchange Penalties After Upbit Fine

Regulators will issue cases in inspection order targeting final decisions in the first half of 2026.

Overview

  • Following a year of on-site AML reviews, the FIU is finalizing legal checks and sanctions committee steps for Korbit, GOPAX, Bithumb, and Coinone.
  • Dunamu, operator of Upbit, was fined 35.2 billion won and hit with a three-month suspension on new deposits and withdrawals after regulators cited major KYC lapses and failures to report suspicious transactions.
  • Officials plan to apply penalties in the order inspections were completed, with Korbit widely expected to be next and Bithumb potentially delayed by an additional order book review.
  • Industry sources expect actions similar to the Upbit case, including institutional restrictions, personnel sanctions, and substantial fines that could total hundreds of billions of won across platforms.
  • Dunamu says it is reviewing the FIU’s findings and may appeal, as broader enforcement also includes blocks on at least 14 unregistered foreign platforms, a pause on crypto lending products, and a crypto tax start now slated for 2027.