Bithumb faces suspension and fines for AML failures

Bithumb faces a proposed six-month suspension and heavy fines in South Korea for AML and KYC failures. New user transfers are mainly restricted. The decision is preliminary.

South Korean cryptocurrency exchange Bithumb is facing a proposed six-month partial business suspension and substantial financial penalties following regulatory investigations. The Financial Intelligence Unit (FIU) issued a preliminary notice, citing Bithumb's failures in anti-money laundering (AML) and know-your-customer (KYC) compliance, particularly regarding customer verification for transactions with unregistered overseas virtual asset operators. If the suspension is finalized, new users would be restricted from transferring or withdrawing virtual assets to external wallets. However, existing customers could continue trading and depositing both fiat and digital assets. Disciplinary actions against Bithumb’s CEO and senior management are also under consideration, with potential fines reaching tens of billions of Korean won. The FIU's notice is not yet final, and Bithumb has the opportunity to respond before any sanctions are confirmed. This action is part of a broader regulatory crackdown on crypto exchanges in South Korea.