South Korea Fines Bithumb $24 Million Over AML Violations

"The FIU's investigation found roughly 6.65 million breaches of the country's AML and customer verification rules. About 3.55 million involved failures to verify customer identities, while 3.04 million cases concerned transactions that should have been blocked but were allowed. Authorities also identified 45,772 transactions with 18 unregistered overseas exchanges."

"The sanctions, part of ongoing regulatory oversight of South Korea's top crypto platforms, include a reprimand for Bithumb's CEO and a six-month suspension for the exchange's reporting officer. Existing customers can continue trading, while the restrictions primarily affect new user account activity, including deposits and withdrawals."

"The violations were uncovered during on-site inspections of South Korea's five largest crypto exchanges between 2024 and 2025. Regulators have emphasized that strict compliance with customer verification and AML obligations is critical to maintaining market trust."

South Korea's Financial Intelligence Unit imposed a 36.8 billion won fine on cryptocurrency exchange Bithumb following an investigation that uncovered approximately 6.65 million anti-money laundering and customer verification violations. The breaches included 3.55 million failures to verify customer identities and 3.04 million transactions that should have been blocked but were permitted. Authorities also identified 45,772 transactions with 18 unregistered overseas exchanges. Sanctions include a six-month partial suspension of new-user services, a reprimand for Bithumb's CEO, and a six-month suspension for the exchange's reporting officer. Existing customers retain trading access. This represents the largest fine imposed on a South Korean virtual asset exchange, surpassing a previous 35.2 billion won penalty to Upbit.

Read at Bitcoin Magazine