South Korea Fines Bithumb $24 Million Over AML Violations

South Korean regulators have imposed a 36.8 billion won (about $24.5 million) fine on crypto exchange Bithumb after uncovering widespread violations of Anti-Money Laundering (AML) regulations. Authorities reported approximately 6.65 million compliance breaches during an inspection, including failures in customer identity verification, transaction monitoring, and record-keeping requirements.

Investigators also found that Bithumb processed 45,772 crypto transfers linked to 18 unregistered overseas virtual asset service providers (VASPs), which violates South Korea’s financial compliance rules.

Six-Month Partial Business Suspension

Alongside the financial penalty, regulators ordered a six-month partial business suspension. From March 27 to Sept. 26, the exchange will be prohibited from processing external crypto transfers for new customers. Existing users will not face trading restrictions, while new users can still trade digital assets and deposit or withdraw Korean won.

Broader AML Enforcement in South Korea

The sanctions were issued by the Financial Intelligence Unit under the Financial Services Commission as part of a broader regulatory push to strengthen AML compliance in the country’s cryptocurrency sector. Similar enforcement actions have previously targeted other domestic exchanges over compliance failures.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.