South Korea Hits Bithumb With $24.5M Fine Over AML Violations

South Korea’s Financial Intelligence Unit (FIU) has fined cryptocurrency exchange Bithumb 36.8 billion won (approximately $24.5 million) and imposed a six-month partial business suspension following an investigation that revealed widespread violations of Anti-Money Laundering (AML) rules. The investigation identified over 6.65 million violations, including deficiencies in customer identity verification, transaction restrictions, and record-keeping. Specifically, Bithumb facilitated 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers (VASPs), contravening South Korean AML regulations.

The sanctions include a ban on processing external crypto transfers for new customers from March 27 to September 26. Existing users will not be affected, and new customers can still conduct transactions in Korean won. The FIU had previously warned Bithumb about transactions with unregistered firms but deemed their compliance efforts insufficient.

This action is part of a broader regulatory crackdown on AML compliance within the South Korean crypto industry. Other exchanges, including Upbit and Korbit, have also faced penalties for similar violations in recent months, demonstrating South Korea’s commitment to enforcing stricter AML standards in the virtual asset space.

(Source：Cointelegraph)