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South Korea’s FIU Proposes Six-Month Partial Suspension for Bithumb Over AML Lapses

A sanctions committee will decide the final measures later this month.

Overview

  • The preliminary notice cites anti-money-laundering and KYC deficiencies, including dealings with unregistered overseas virtual asset operators.
  • The proposed restriction would block virtual-asset transfers by newly registered users, while existing customers can still deposit, withdraw and trade.
  • Regulators also proposed disciplinary action against CEO Lee Jae-won, according to local reports.
  • Bithumb said the notice is not a final order and that the scope or duration could change during the review process.
  • The action follows a February system error that credited about 620,000 BTC before roughly 99.7% was recovered, as broader inspections continue for Coinone and GOPAX after earlier penalties for Upbit and Korbit.