South Korea Implements Comprehensive Crypto AML Enforcement: Exchanges Subject to Standardized Sanctions

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South Korea Implements Comprehensive Crypto AML Enforcement: Exchanges Subject to Standardized Sanctions

Bitget-RWA2025/11/24 06:32

By:Bitget-RWA

- South Korea's FIU is imposing uniform penalties on major crypto exchanges like Upbit and Bithumb for AML/KYC violations, starting with a 35.2 billion won fine on Dunamu. - A "first-in, first-out" enforcement timeline extends into 2026, with Korbit and GOPAX facing imminent sanctions while Bithumb's case delays due to order book inspections. - The crackdown reflects South Korea's global regulatory leadership, aligning with stricter AML compliance and a delayed 2027 crypto tax regime that heightens market

South Korea's Financial Intelligence Unit (FIU) is intensifying its oversight of the cryptocurrency industry, moving forward with penalties against leading exchanges for breaches of anti-money laundering (AML) and Know Your Customer (KYC) regulations. These enforcement measures, which come after a year-long review, are directed at platforms such as Upbit, Bithumb, Coinone, Korbit, and GOPAX. Dunamu, the company behind Upbit, has already been hit with a 35.2 billion won fine and a three-month suspension of essential services,

establishing a benchmark for future disciplinary actions

The regulatory campaign is being carried out in a "first-in, first-out" sequence, with each exchange inspected in the order they were reviewed. Dunamu was the initial target after an August 2024 assessment, followed by Korbit (October 2024), GOPAX (December 2024), Bithumb (March 2025), and Coinone (April 2025).

Korbit and GOPAX are anticipated to be sanctioned

in the near future, while Bithumb's case may be postponed due to an extra review of its order book practices. Experts in the field note that the nature of violations is largely similar across these exchanges,

suggesting that fines and operational bans will likely resemble those imposed on Dunamu

South Korea Implements Comprehensive Crypto AML Enforcement: Exchanges Subject to Standardized Sanctions image 0

The FIU's recent moves are part of a larger initiative to strengthen AML enforcement within South Korea's digital asset sector. The inspections have centered on KYC compliance, the reporting of suspicious activity, and adherence to the Special Financial Transactions Act.

Authorities have stressed consistent enforcement of penalties

, making sure that all platforms are held to the same standards, regardless of their size or influence. However, the timeline for these actions has been pushed back from initial estimates. Although most penalties were expected to be finalized by mid-2025,

the process is now projected to continue into the first half of 2026

, with Bithumb's outcome possibly delayed further due to ongoing probes.

These regulatory actions highlight South Korea's role as a frontrunner in global crypto oversight. The nation has enforced tough AML measures for some time, but this latest wave of enforcement marks a renewed emphasis on regulatory compliance.

The FIU's initiatives are in line with a broader policy direction

, which includes a postponed cryptocurrency tax policy now expected in 2027, adding to the market's uncertainty. At the same time, these regulatory steps have been likened to the Federal Reserve's recent rate cut fluctuations,

as both underscore significant changes in the economic and regulatory environment

that are influencing investor confidence.

The exchanges currently under investigation are facing a more demanding regulatory environment. For example, Bithumb's additional scrutiny has cast doubt on its ability to fulfill compliance requirements, while Coinone is likely to receive penalties soon after legal evaluations are completed.

The FIU's comprehensive approach indicates a long-term plan

to bring greater stability to the crypto industry, aiming to balance regulatory control with continued innovation.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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