Particle.news
Download on the App Store

South Korea Proposes Six-Month Partial Suspension for Bithumb Over AML/KYC Breaches

The FIU cites AML/KYC lapses involving unregistered overseas counterparties, with final penalties to be set at a sanctions review this month.

Overview

  • Bithumb received a preliminary notice from South Korea’s Financial Intelligence Unit proposing a six-month partial business suspension for alleged compliance violations.
  • Regulators flagged transactions with unregistered overseas virtual asset operators and deficiencies in Know Your Customer procedures.
  • The proposed restriction would apply only to virtual-asset transfers by newly registered users, while existing customers can continue deposits, withdrawals, and trading.
  • The FIU also notified the exchange of disciplinary action against its chief executive, and a sanctions committee will determine the final outcome later this month.
  • Bithumb said the measure is not final and may be adjusted during review, following heightened scrutiny after a February error that briefly credited roughly 620,000 BTC; regulators are also reviewing Coinone and GOPAX after prior actions against Upbit’s operator and Korbit.