SEOUL, December 31 (AJP) - South Korea’s Financial Intelligence Unit (FIU) has fined cryptocurrency exchange Korbit 2.73 billion won ($2 million) for violations of anti-money laundering (AML) obligations, issuing an institutional warning against the company.
The Financial Services Commission (FSC) said on Wednesday a comprehensive FIU inspection found Korbit had breached legal requirements, including prohibitions on transactions with unreported virtual asset service providers (VASPs) and obligations related to customer due diligence and transaction restrictions.
The FIU held a sanctions review committee meeting on Tuesday and finalized follow-up measures after considering past sanction precedents, Korbit’s voluntary corrective actions and relevant legal standards, the commission said.
The FIU conducted an on-site inspection of Korbit from Oct. 16 to 29, uncovering around 22,000 violations related to customer due diligence and transaction-restriction requirements.
Korbit was also found to have supported 19 virtual asset transfer transactions involving three overseas VASPs that had not met reporting requirements under South Korean law, violating the ban on dealing with unreported providers.
In addition, inspectors identified 655 cases in which Korbit failed to conduct required money-laundering risk assessments when supporting new transactions, including those involving non-fungible tokens.
Copyright ⓒ Aju Press All rights reserved.