Key Highlights:
- South Korea’s FIU is set to audit Korbit, Gopax, Bithumb, and Coinone after Dunamu’s record fine.
- Violations are expected to mirror Upbit’s AML and KYC lapses.
- Majority of the sanctions will be finalized in the first half of 2026.
South Korea’s Financial Intelligence Unit (FIU) is getting ready for another round of strict enforcement after imposing a fine on Dunamu. The regulatory body is now eyeing exchanges such as Korbit, Gopax, Bithumb, and Coinone according to Naver. The exchanges may face company-level and individual level penalties, which is similar to the record fine already given to Dunamu, the operator of Upbit. Many of the expected violations are believed to be the same as Dunamu’s compliance issues, and most of the actions are likely to be finalized by the first half of next year.
FIU Widens Crackdown
The FIU seems to be taking action after a series of on-site AML inspections were carried out since last year on major crypto exchanges, which includes Upbit, Bithumb, Coinone, Korbit and Gopax. The regulators are getting stringent and moving from reviewing to penalizing. After Dunamu, (Upbit’s operator), Korbit, Gopax, Bithumb, and Coinone are expected to be penalized next, mostly in the order their inspections finished. There is a possibility that Bithumb may take longer because it is being reviewed again through on-site inspection.
What Happened to Dunamu?
Dunamu, a South Korean fintech and blockchain company that operates on Upbit, has already been hit with an administrative fine of 35.2 billion won which is around 24-26 million US dollars. This is the largest penalty that has been even imposed by Korean financial authorities for AML violations under the Specific Financial Information Act. The regulatory body was able to identify 8.6 million instances of non-compliance, including failure in customer verification, improper handling of unverified accounts, and missed suspicious transaction reports.
The regulators were able to find out about 5.3 million cases where Dunamu was not able to properly verify users, the company was accepting blurred or re-photographed ID images and documents with missing or inaccurate address details. The regulators also cited that almost 3.3 million cases where trading was allowed for customers whose identity checks had not been completed and at least 15 instances in which suspected money-laundering activity was not reported, even when law-enforcement searches highlighted potential criminal use of accounts.
Additional sanctions on Upbit
The November fine for Dunamu has come after earlier penalties. In February, Dunamu was hit with a three month partial business suspension and staff disciplinary action for handling transactions that were through unregistered crypto operators, this is something that the Korean rules strictly forbid.
Regulators also found tens of thousands of transfers that have been linked to unregistered foreign exchanges. This raised concerns that weak controls at Upbit can lead to cross-border activity outside the regulated system.
Dunamu said it accepts FIU’s decision and has improved its investor-protection measures. It can still submit its response before the fine is finalized, but officials have made it clear that serious AML failures will lead to tough punishment.
What Korbit, Gopax, Bithumb, Coinone Face
The regulatory authority has finished on-site checks for all these exchanges but the penalties are still under legal review. While the exact findings for each of the exchanges have not yet been disclosed, but it is being said that the severity of the penalties could be similar in intensity to Dunamu’s and penalties could reach tens of billions of won per firm but it will all depend on the scale of violations.
Given that the FIU’s sanctions pipeline is already occupied, most of the measures are expected to be finalized in the first half of next year, effectively extending the current enforcement cycle across Korea’s largest domestic exchanges. For these exchanges, this situation poses a financial and operational risk. There is a possibility that these exchanges can face big fines, stricter business limits, and required cleanup or improvement plans.
Also Read: Coinbase Launches Crypto Staking in New York Amid Regulatory Relief
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