South Korea Fines Bithumb $24M, Imposes 6-Month Partial Suspension Over AML Violations

South Korea’s Financial Intelligence Unit (FIU) has penalized cryptocurrency exchange Bithumb with a 36.8 billion won ($24.6 million) fine and a six-month partial suspension of new-user services following the discovery of approximately 6.65 million anti-money laundering (AML) and customer verification rule breaches. The investigation revealed failures in verifying customer identities and allowing transactions that should have been blocked, including interactions with unregistered overseas exchanges. Bithumb’s CEO and reporting officer also received reprimands. Existing customers can continue trading, but new account activity is restricted. This fine surpasses a previous penalty imposed on Upbit, signaling increased regulatory scrutiny of South Korean crypto platforms.

This action follows a recent incident where Bithumb mistakenly distributed billions of dollars worth of Bitcoin to users during a promotional event due to a payment unit error, briefly impacting Bitcoin prices on the platform. The FIU will finalize the fine after considering Bithumb’s response, emphasizing the importance of strict compliance with AML and customer verification regulations to maintain market trust.

(Source：Bitcoin Magazine)