Bithumb Receives Business Suspension Notice for AML Violations

South Korea's second-largest crypto exchange, Bithumb, received a preliminary notice from the Financial Intelligence Unit (FIU) for a potential partial business suspension lasting up to six months over alleged anti-money laundering (AML) and know-your-customer (KYC) deficiencies, specifically concerning dealings with unregistered overseas virtual asset service providers. The FIU also issued a reprimand warning to Bithumb's CEO, which could affect future appointments. A sanctions review is expected in March, but Bithumb stated the measure is pre-notification and could be adjusted, noting that any restrictions would only apply to virtual asset transfers for new members. This scrutiny follows a recent incident where Bithumb mistakenly credited users with 2,000 BTC instead of 2,000 KRW during a promotion. South Korean regulators are increasing enforcement, having previously penalized exchanges Upbit and Korbit for similar AML/KYC violations.

(Source：Cointelegraph)