South Korea Fines Bithumb $25M and Orders 6-Month Partial Suspension Over AML Violations

Bithumb Sanctioned by South Korean FIU Over Identity Verification Failures

Reports note that South Korea’s Financial Intelligence Unit (FIU), operating under the Financial Services Commission, finalized sanctions against Bithumb on March 16 following an investigation into compliance failures under the Act on Reporting and Using Specified Financial Transaction Information.

Authorities determined the exchange committed widespread anti-money-laundering (AML) and know-your-customer (KYC) violations tied to identity verification and overseas transactions.

Regulators imposed a fine of about 36.8 billion to 37 billion won — roughly $24 million to $25 million — after identifying between 6.59 million and 6.65 million cases where customer identity verification procedures were not properly completed. The FIU also cited thousands of transactions linked to 18 overseas virtual asset providers that were not registered with South Korean authorities.

Alongside the financial penalty, officials ordered a six-month partial business suspension. The measure primarily restricts new users from transferring virtual assets to external wallets or platforms, while existing customers are allowed to continue using most services.

The FIU also issued a formal reprimand to Bithumb’s chief executive as part of the disciplinary action. South Korean media outlets reported the decision after the regulator’s sanctions deliberation committee reached its final determination.

The action follows a preliminary notice delivered to Bithumb in early March indicating that regulators were considering both a significant fine and operational restrictions. Authorities stated the violations occurred during routine monitoring of compliance obligations required of domestic digital asset platforms.

Bithumb has been given 10 days to submit its official response before the sanctions are finalized and implemented. The exchange said it plans to introduce corrective measures and strengthen its compliance systems following the regulator’s decision.

FAQ 🔎

• Why did South Korea fine Bithumb?
  Regulators found millions of identity verification failures and transactions involving unregistered overseas virtual asset providers.
• How large is the Bithumb fine?
  South Korea’s Financial Intelligence Unit imposed a penalty of roughly 36.8–37 billion won, about $24–25 million.
• What does the six-month suspension mean for Bithumb users?
  The restriction mainly affects new users’ external virtual asset transfers, while existing customers can continue most services.
• Can Bithumb challenge the sanctions?
  The exchange has 10 days to submit its response or objections before the regulatory decision is finalized.