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South Korea Fines Bithumb 36.8 Billion Won and Imposes Six-Month Partial Suspension

The decision follows sector inspections that exposed extensive AML failures at the platform.

Overview

  • The FIU finalized sanctions on March 16, ordering a six-month restriction focused on services for newly registered users as existing customers continue trading and transfers.
  • Regulators counted about 6.65 million violations, including roughly 3.55 million failures in customer identity checks and about 3.04 million instances of not blocking required transactions.
  • Authorities said the measures respond to breaches of the Act on Reporting and Using Specified Financial Transaction Information, according to the Financial Services Commission.
  • Personnel penalties include a reprimand warning for Bithumb’s chief executive and a six-month suspension for the exchange’s reporting officer.
  • The action extends a broader crackdown following 2024–2025 on-site reviews of major exchanges and comes after earlier penalties for Upbit’s operator and Korbit, with scrutiny intensified by Bithumb’s recent erroneous bitcoin distribution.