South Korea’s Financial Intelligence Unit (FIU) is gearing up for another wave of enforcement actions against domestic crypto exchanges, signaling that the country’s regulatory pressure on digital asset platforms is far from easing. The move comes shortly after Upbit operator Dunamu was hit with one of the largest fines ever issued in the nation’s crypto sector.
The FIU’s renewed push follows months of on-site inspections that began in mid-2024. Upbit was the first to undergo a full compliance review, and the findings were serious: investigators uncovered millions of violations related to Know Your Customer (KYC) rules and anti-money laundering (AML) procedures. The result was a three-month suspension on new user deposits and withdrawals, along with a 35.2 billion won fine issued earlier this month.
But Upbit was only the start. According to local media reports citing industry insiders, several other major exchanges — including Korbit, GOPAX, Bithumb, and Coinone — were inspected under the same standards. Regulators now believe those platforms may show similar weaknesses in their compliance systems, setting the stage for additional penalties.
Sources say sanctions will be announced in the order inspections were completed, putting Korbit at the top of the list. If the punishments mirror those given to Dunamu, the combined fines across all exchanges could reach into the hundreds of billions of won. With 2025 nearing its close, observers expect the remaining decisions to be finalized by the first half of 2026.
Meanwhile, offshore exchanges have not escaped scrutiny either. Earlier this year, South Korea blocked access to at least 14 foreign platforms — including well-known names like KuCoin — after determining they were operating in the country without proper registration or basic compliance safeguards. Authorities cut off website and app access entirely, citing investor protection concerns and widespread structural non-compliance among the banned platforms.
The FIU is also turning its attention to other consumer-facing areas of the crypto market, such as fee structures on local exchanges, in an effort to improve transparency and reduce costs for users. At the same time, the Financial Services Commission has temporarily halted crypto lending services nationwide due to unclear regulations and mounting risks for retail traders.
As the regulatory net tightens, South Korea is making it clear that both domestic and offshore crypto companies will be expected to meet stricter standards — and that those who don’t may face steep consequences.
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