South Korea Eyes Sanctions on Crypto Exchanges After FIU AML Review
South Korea’s Financial Intelligence Unit completed a year-long probe into crypto platforms and is moving to impose sanctions on exchanges found to have anti-money laundering gaps. Authorities say the measures target major venues that failed to meet reporting and customer due-diligence standards; penalties could include fines, restrictions on fiat rails, or tighter operational conditions while corrective steps are required.
The announcement tightens the regulatory spotlight on local and international firms operating in Korea and may pressure exchanges to accelerate KYC upgrades and transaction-monitoring systems. For traders and institutional counterparties, the actions raise near-term uncertainty over liquidity and access to services, while signaling broader regional momentum toward stricter AML enforcement in crypto markets.