**[South Korea FIU Imposes $1.88 Million Fine and Issues "Institutional Warning" to Korbit]** Foresight News reports that, according to an announcement by South Korea's Financial Intelligence Unit (FIU), the cryptocurrency exchange Korbit has been penalized for violating anti-money laundering (AML) obligations under the Specific Financial Information Act. FIU has decided to issue an "institutional warning" to Korbit and impose a fine of 2.73 billion Korean won (approximately $1.88 million). Additionally, FIU has issued a "caution" to Korbit's representative director and a "reprimand" to the person responsible for AML reporting. The sanctions stem from three major violations discovered during FIU's on-site inspection of Korbit conducted between October 16 and October 29, 2024: Korbit was found to have approximately 22,000 cases of customer due diligence (CDD) and transaction restriction violations, including accepting ambiguous identification documents, allowing transactions despite incomplete customer information, and failing to fulfill periodic customer re-verification obligations; conducting 19 asset transfer transactions with three unregistered overseas virtual asset service providers; and failing to perform required money laundering risk assessments before launching 655 new assets, including NFTs.