South Korea's Financial Intelligence Unit (FIU) is set to escalate its regulatory efforts against domestic cryptocurrency exchanges, following significant penalties imposed on Dunamu, the operator of Upbit. According to the conclusions drawn in the analytical report, this move signals a broader initiative to enhance compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations within the crypto industry.
Sanctions on Major Exchanges
The FIU plans to impose sanctions on several major exchanges, including:
- Korbit
- Gopax
- Bithumb
- Coinone
Anticipated Penalties
Analysts anticipate that the penalties will mirror those levied against Dunamu, which faced a disciplinary warning for its CEO, a three-month suspension on new customer deposits and withdrawals, and a hefty fine of approximately USD 243.5 million.
Ongoing Enforcement Initiative
The sanctions process for the remaining exchanges is already in motion, with most actions expected to conclude by the first half of next year. However, Bithumb may experience delays due to an additional onsite inspection. This ongoing enforcement initiative by South Korean regulators highlights their commitment to tightening oversight of the virtual asset sector, aiming to foster a more secure and compliant trading environment.
In a concerning development, Tenaga Nasional Bhd reported over RM1 billion in losses due to electricity theft linked to cryptocurrency mining, highlighting the challenges faced by regulators. For more details, see read more.
