Bithumb faces proposed 6-month partial ban over South Korea AML breaches

South Korean cryptocurrency exchange Bithumb has received a preliminary notice from the Financial Services Commission’s Financial Intelligence Unit (FIU) proposing a six-month partial business suspension and disciplinary action against its CEO. The proposed sanctions stem from allegations that Bithumb continued transactions with unregistered overseas virtual asset businesses and failed to properly enforce Know Your Customer (KYC) procedures.

The proposed restriction would only affect virtual asset transfers for newly registered users, allowing existing customers to continue trading, depositing, and withdrawing assets. This decision is not final and is subject to a sanctions deliberation committee later this month. This action follows increased regulatory scrutiny in South Korea, where Upbit and Korbit also faced penalties for similar compliance failures last year. The development comes shortly after Bithumb mistakenly distributed significant amounts of Bitcoin to users, prompting heightened oversight.

(Source：CoinDesk)