Bithumb Hit With $24M Fine, Partial Suspension in Korea

South Korean regulators have imposed a 36.8 billion won ($24.5 million) fine on cryptocurrency exchange Bithumb and ordered a six-month partial suspension of its operations, following extensive violations of anti-money laundering (AML) regulations.

The sanctions were issued by the country’s Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) after a regulatory review uncovered widespread compliance failures.

Millions of Violations Identified

According to findings from the inspection, authorities identified approximately 6.65 million breaches related to AML requirements. These included shortcomings in customer identity verification, inadequate transaction monitoring, and failures in maintaining proper records.

Regulators also found that Bithumb processed more than 45,000 crypto transactions involving 18 unregistered overseas virtual asset service providers (VASPs), a direct violation of South Korea’s financial regulations.

The penalty represents one of the largest fines ever imposed on a crypto exchange in the country, underscoring the increasing intensity of regulatory oversight.

Six-Month Partial Suspension

As part of the enforcement action, Bithumb will be prohibited from handling external cryptocurrency transfers for new customers for a six-month period, from March 27 to September 26.

However, the restrictions will not apply to existing users, who will continue to trade normally. New customers will still be able to buy and sell digital assets and deposit or withdraw Korean won, but will face limitations on transferring crypto assets outside the platform.

Repeated Warnings Ignored

The FIU stated that it had previously issued multiple warnings to Bithumb regarding transactions involving unregistered foreign platforms. Despite these notices, the exchange failed to implement effective controls to prevent such activity.

A preliminary notice outlining the planned suspension was issued earlier in March before regulators finalized the sanctions.

Broader Regulatory Crackdown

The action against Bithumb is part of a wider effort by South Korean authorities to strengthen AML compliance across the digital asset sector.

In recent months, other major exchanges have faced similar penalties. Upbit was subjected to restrictions on new customer deposits and withdrawals along with a multi-billion won fine, while Korbit received financial penalties and an institutional warning over compliance shortcomings.

The latest enforcement measures highlight the government’s ongoing push to tighten oversight of cryptocurrency platforms and ensure adherence to financial crime regulations.