South Korea’s financial authorities have imposed a major penalty on cryptocurrency exchange Bithumb, issuing a fine of 36.8 billion won, equivalent to about 24.6 million dollars, over violations related to anti money laundering rules. Regulators also ordered a six month partial suspension of certain services following findings that the platform failed to properly comply with several regulatory requirements designed to prevent illicit financial activity.
The sanctions were announced by South Korea’s Financial Intelligence Unit, which oversees anti money laundering and counter terrorism financing regulations in the country. According to officials, the penalties stem from violations of the Act on Reporting and Using Specified Financial Transaction Information, a key law governing financial transparency and compliance in the cryptocurrency sector. The agency concluded that Bithumb failed to meet multiple obligations related to customer verification and transaction monitoring.
Investigators reported that the exchange committed approximately 6.65 million compliance violations. About 3.55 million cases involved failures to properly carry out customer identity verification procedures, commonly known as know your customer requirements. Another 3.04 million violations involved situations in which the platform did not block transactions that should have been restricted under regulatory rules.
As part of the disciplinary measures, authorities ordered a partial suspension of the exchange’s operations for a period of six months. The suspension specifically affects services for newly registered users, meaning new customers will not be able to open accounts or access trading services during that time. Existing users, however, will still be allowed to trade digital assets and transfer funds through the platform.
Regulators also issued penalties directed at company leadership. Bithumb’s chief executive received a formal reprimand warning, while the exchange’s reporting officer was suspended from duties for six months. Authorities said these personnel actions were necessary to reinforce accountability within the organization and ensure that compliance responsibilities are taken seriously.
The violations were uncovered during inspections carried out between 2024 and 2025 across South Korea’s largest cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit and Gopax. The regulatory review was part of a broader effort by the government to strengthen oversight of the rapidly growing digital asset market and reduce the risks associated with money laundering and financial crime.
South Korea has significantly increased scrutiny of crypto exchanges in recent years. In a previous enforcement action, regulators imposed a fine of 35.2 billion won and a three month partial suspension on Dunamu, the operator of the country’s largest exchange Upbit, over compliance gaps. Another exchange, Korbit, also faced financial penalties and institutional warnings during the same regulatory crackdown.
Bithumb, which was founded in 2014, remains one of the largest cryptocurrency exchanges operating in South Korea based on trading volume. The enforcement action comes shortly after another incident in which the exchange mistakenly distributed a large amount of bitcoin to users, further drawing attention to operational and compliance challenges within the platform.
