In the quiet shadows of Seoul’s relentless hustle, Korbit-the venerable old-timer among crypto exchanges-decided to throw a grand finale to the year. Not with fireworks, no, but with a hefty slap from the financial guardians of the land, a $1.8 million slap, to be precise. Ah, sweet irony-if only money could solve the puzzle of compliance! 🎭
On the fateful December 31, as the calendar waltzed to its final dance, the FIU (Financial Intelligence Unit, or as some call them-crypto’s friendly neighborhood enforcers) announced that Korbit had accumulated a delightful souvenir: a 2.73 billion won fine. A number so grand, it almost sounds like an entrepreneurial joke gone wrong, revealing the cozy chaos in its AML and customer verification systems. Think of it as a bureaucratic slapstick-failure after failure, nearly 22,000 violations, all under one roof-sounding more like a seasonal sale than serious regulation. 🎉
Major AML and KYC Failures at Korbit
The scene was set during a cunning inspection in October, when auditor eyes peeled through the thin veil of Korbit’s compliance. What they uncovered-not exactly a surprise-a carnival of errors, violating nearly 22,000 rules. The Sanctions Review Committee, perhaps amused or exasperated, decided to hand out disciplinary love-warnings, reprimands, and a gentle nudge to the CEO himself. Because nothing says corporate accountability like a stern glance from the regulator.
Users Not Verified? Oh, the Humanity!
Turns out, the real comedy was in the user verification department-where proper identity checks took a holiday. Around 12,800 instances of identity mishaps, featuring blurry IDs, incomplete addresses, and a suspiciously relaxed attitude towards re-verification. Users kept trading even after their risk levels soared-like trying to dance on a tightrope with a blindfold. And another 9,100 cases allowed users to trade before finishing the verification process-because who doesn’t love a little chaos?
Other Key Red Flags
Regulators weren’t done-they flagged 19 virtual asset transfers involving three clandestine overseas providers, slipping through the cracks of Korea’s watchful eye. Also, 655 instances where Korbit forgot to do the requisite ‘risk assessment’ before launching some shiny new NFT services-because why assess risk when you can just wing it? 🤷♂️
The Moment of Timing
And just when you thought it might be over, news emerged-Mirae Asset, the rumored benefactor, considering a massive takeover-still waiting in the wings, thinking about buying 92% of Korbit for a neat 140 billion won ($97 million). Korbit, the fourth-largest among Korea’s six crypto platforms, now dances to the tune of tighter oversight-because who needs relaxed compliance when you can have a fine prescription instead?
As the FIU promises more details after a short ten-day pause, one might ponder-are regulation or comedy better suited for these digital dramas? Only time and perhaps another fine will tell. 🎭🤔
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2025-12-31 15:32