South Korea Imposes $24.5 Million Fine on Bithumb for AML Violations
- Bithumb was fined approximately $24.5 million (36.8 billion won) for over 6 million anti-money laundering (AML) violations.
- The exchange facilitated 45,772 transactions with unregistered foreign virtual asset service providers (VASPs).
- A six-month partial ban on external cryptocurrency transfers for new clients is effective from March 27, 2026, to September 26, 2026.
- Existing customers can still buy and sell digital assets but cannot conduct external transfers during this period.
- This penalty represents the largest fine ever imposed on a cryptocurrency exchange in South Korea.
The Financial Intelligence Unit of South Korea’s Financial Services Commission led the investigation into Bithumb’s compliance with AML regulations, revealing significant lapses in client identity verification and transaction monitoring.
This case underscores the importance of robust compliance frameworks in the cryptocurrency sector, as evidenced by Bithumb’s failure to adhere to legal mandates following over 6 million violations.
