Bithumb faces a record fine and restrictions after authorities uncovered millions of compliance breaches.
South Korea's Financial Intelligence Unit (FIU) has imposed a fine of 36.8 billion won, equivalent to about $24.5 million, on cryptocurrency exchange Bithumb for widespread anti-money laundering (AML) violations.
Regulators identified approximately 6.65 million breaches during an inspection, including failures in customer identity verification, transaction restrictions, and record-keeping requirements.
Among the violations, Bithumb facilitated 45,772 cryptocurrency transfers involving 18 unregistered overseas virtual asset service providers (VASPs), breaching South Korea's AML regulations.
Penalties and Restrictions Imposed
The FIU, under the Financial Services Commission, decided on the penalties after a sanctions deliberation committee meeting, marking the largest fine on a South Korean crypto exchange to date.
Starting March 27, Bithumb faces a six-month partial suspension, prohibiting external crypto transfers for new customers until September 26, while existing users can continue trading without restrictions.
New customers can still buy, sell, deposit, or withdraw Korean won on the platform, but the FIU noted that Bithumb ignored prior warnings to stop dealings with unregistered overseas firms.
On March 9, the FIU issued a preliminary notice of the suspension, citing ongoing concerns over Bithumb's non-compliance with the Act on Reporting and Use of Specific Financial Transaction Information.
This enforcement action is part of a broader regulatory crackdown in South Korea. In February, Upbit received a 35.2 billion won fine and a three-month restriction on crypto deposits and withdrawals for new customers due to similar AML issues involving unregistered VASPs.
Earlier, in December, Korbit was fined 2.73 billion won for AML and customer-verification breaches, highlighting ongoing efforts to strengthen oversight in the cryptocurrency sector.
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