365Crypto
Massive Fine Hits Bithumb
South Korea has taken strong action against one of its largest crypto exchanges.
Authorities fined Bithumb about $24 million after uncovering millions of violations tied to anti-money laundering rules.
The penalty marks one of the largest enforcement actions against a crypto platform in the country’s history.
Millions of AML Violations Found
Regulators identified around 6.65 million breaches during an inspection.
The violations included weak identity checks, poor record keeping, and failures to block risky transactions.
Officials also found over forty thousand transfers linked to unregistered foreign crypto firms, raising red flags across compliance systems.
Partial Business Ban Begins
The sanctions go beyond a fine.
Bithumb will face a six-month restriction on certain services for new users starting late March.
During this period, new customers cannot send crypto outside the platform, though they can still trade and move local currency.
Existing Users Stay Active
Current users will not face limits on their accounts.
They can continue trading, depositing, and withdrawing without new restrictions.
This split approach allows the exchange to operate while still feeling pressure from regulators.
Warnings Ignored by Exchange
Authorities say Bithumb received several warnings before the penalty.
The Financial Intelligence Unit claimed the exchange failed to block transactions involving unregistered providers.
Officials argue that proper safeguards were not put in place despite repeated guidance.
Wider Crackdown Across Industry
Bithumb is not alone in facing scrutiny.
South Korea has increased enforcement across its crypto sector to improve compliance standards.
Other exchanges have faced fines and restrictions for similar failures tied to anti-money laundering obligations.
Industry Feels the Pressure
Earlier actions targeted major platforms like Upbit and Korbit.
These cases show a pattern of strict oversight as regulators push exchanges to follow global financial rules.
For crypto firms, compliance is no longer optional, it is survival.
Footnotes
AML: Anti-Money Laundering rules designed to prevent illegal financial activity.
VASP: Virtual Asset Service Provider, a company that offers crypto services like exchanges.
