In a stark demonstration of South Korea's rigorous regulatory environment, the nation's Financial Intelligence Unit (FIU) has delivered contrasting outcomes for two major cryptocurrency exchanges. Dunamu, the operator of the Upbit exchange, has successfully renewed its crucial Virtual Asset Service Provider (VASP) license, solidifying its position as a compliant market leader. The approval, received after a meticulous 16-month review process that began with an application in August 2024, assures millions of users of Upbit's commitment to secure and legal operations.
Concurrently, the FIU has initiated a critical sanction process against the Korbit exchange. Korbit received a preliminary notice on December 18, 2025, alleging violations of anti-money laundering (AML) obligations. The exchange now has approximately 10 days to present its case during an opinion hearing period before the FIU's Sanctions Deliberation Committee makes a final ruling, which could result in substantial fines or operational restrictions.
These parallel developments underscore South Korea's methodical and strict approach to cryptocurrency oversight. The VASP license, a cornerstone for legal exchange operation in the country, mandates rigorous AML protocols, know-your-customer (KYC) procedures, and robust security frameworks. Upbit's renewal signals stability and reinforces trust, while the action against Korbit highlights the serious consequences of non-compliance. This regulatory duality sends a clear message to the market: adherence to high standards is rewarded, but violations are met with decisive enforcement, shaping a safer ecosystem for investors.
