South Korean regulators close compliance investigation against local cryptocurrency platform

The Financial Intelligence Unit (FIU) of South Korea has imposed a fine of 2.73 billion won (approximately $1.88 million) on a well-known local cryptocurrency platform after identifying multiple deficiencies in its compliance controls. The regulatory action reflects the ongoing efforts of authorities to strengthen anti-money laundering standards in the crypto sector.

Key Violations Identified

Investigators found that the platform failed to meet several key requirements under the Specific Financial Information Act. Major deficiencies include inadequate customer due diligence procedures, insufficient implementation of transaction restrictions, and acceptance of transactions with foreign virtual asset service providers that lacked the required registration.

A particularly serious issue was the omission of money laundering risk assessments when the platform expanded its services into new categories of digital assets, including non-fungible tokens (NFT). This regulatory gap reveals systemic weaknesses in the company’s compliance architecture.

Consequences and Disciplinary Measures

Beyond the monetary fine, the FIU issued a formal institutional warning to the platform and took disciplinary actions against its CEO and the head of compliance. These measures aim to ensure structural changes in corporate governance and internal oversight processes.

The case underscores the growing importance that Asian regulators place on compliance in anti-money laundering efforts, setting precedents for other platforms operating in markets with rigorous regulatory oversight.