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South Korea Moves Toward New Crypto Exchange Penalties After Upbit Fine

Regulators will issue cases in inspection order targeting final decisions in the first half of 2026.

Overview

  • Following a year of on-site AML reviews, the FIU is finalizing legal checks and sanctions committee steps for Korbit, GOPAX, Bithumb, and Coinone.
  • Dunamu, operator of Upbit, was fined 35.2 billion won and hit with a three-month suspension on new deposits and withdrawals after regulators cited major KYC lapses and failures to report suspicious transactions.
  • Officials plan to apply penalties in the order inspections were completed, with Korbit widely expected to be next and Bithumb potentially delayed by an additional order book review.
  • Industry sources expect actions similar to the Upbit case, including institutional restrictions, personnel sanctions, and substantial fines that could total hundreds of billions of won across platforms.
  • Dunamu says it is reviewing the FIU’s findings and may appeal, as broader enforcement also includes blocks on at least 14 unregistered foreign platforms, a pause on crypto lending products, and a crypto tax start now slated for 2027.