South Korea Fines Bithumb 36.8 Billion Won for AML Violations

South Korea's Financial Intelligence Unit has fined cryptocurrency exchange Bithumb 36.8 billion won, approximately 24.5 million dollars, and imposed a six-month partial business suspension for widespread violations of anti-money laundering and customer verification rules. The penalties, announced following a sanctions review, target one of the country's largest digital asset platforms and mark the heaviest enforcement action yet against a Korean exchange.

The FIU, operating under the Financial Services Commission, identified roughly 6.65 million breaches during a comprehensive audit of Bithumb's compliance systems. Authorities determined that the exchange failed to conduct proper customer identity checks, monitor transactions effectively, and maintain required records under the Act on Reporting and Use of Specific Financial Transaction Information. In particular, Bithumb processed 45,772 cryptocurrency transfers linked to 18 unregistered overseas virtual asset service providers, despite repeated regulatory warnings to cease such activities. The FIU had issued a preliminary notice of the suspension on March 9, 2025, prompting a committee deliberation that led to the final decision.