South Korea’s regulatory pressure on crypto just intensified. Authorities have fined Bithumb 36.8 billion won, about $24.6 million, and imposed a six month partial suspension after uncovering widespread anti money laundering failures.
The violations are significant. Regulators identified roughly 6.65 million breaches, including 3.55 million cases of failed customer identity checks and more than 3 million instances where suspicious transactions were not properly blocked. The exchange also processed tens of thousands of transfers involving unregistered overseas crypto firms, despite repeated warnings.
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The suspension targets new users only, meaning existing customers can continue trading and moving funds. Still, the penalties extend beyond the platform itself. Bithumb’s CEO received a formal reprimand, while its compliance officer was suspended.
This is part of a broader crackdown. South Korea has already fined Upbit and Korbit for similar issues, signaling a clear shift toward stricter oversight.
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