The Korea Financial Intelligence Unit (FIU) is preparing to impose significant sanctions on four major domestic cryptocurrency exchanges -Korbit, Gopax, Bithumb, and Coinone. The sanctions are a result of violations regarding anti-money laundering (AML) and “know your customer” (KYC) obligations.
The FIU has conducted on-site inspections over the past 18 months and will process cases sequentially (“first-in, first-out”). Sanctions will likely include fines potentially reaching hundreds of billions of won, alongside institutional and personnel disciplinary actions. This follows the precedent set in February, when Dunamu (parent company of Upbit) faced similar sanctions, including the suspension of specific executive functions.
While four exchanges are currently awaiting decisions, most sanctions are expected to be finalized by the first half of next year.
There are reports that South Korea’s crypto tax regime, scheduled for January 2027, may face further delays due to a lack of infrastructure and guidelines.
On a positive note for the industry, the government is reportedly considering lifting a seven-year ban that prevents crypto firms from being recognized as “venture companies,” which would open the door to tax breaks and financing support.
