South Korea Fines Crypto Exchange Bithumb $$24 Million for AML Violations

South Korea's Financial Intelligence Unit (FIU) has imposed a $24.6 million fine on Bithumb for millions of anti-money laundering (AML) rule violations. The authorities also ordered a six-month partial operational suspension that prohibits the exchange from accepting new user registrations. This strict measure was taken following an on-site inspection that discovered approximately 6.65 million violations related to customer identity verification (KYC) and failures to block suspicious transactions.

An official report showed 3.55 million failures in identity verification procedures and 3.04 million technical oversights in blocking accounts on the blacklist. Beyond financial penalties, regulators imposed personnel sanctions including a formal reprimand for Bithumb's CEO and a six-month suspension of duties for compliance staff. Although operations for new users are suspended, existing customers are reported to still be able to trade and withdraw funds normally.

The sanctions against Bithumb are part of South Korea's strict oversight of major crypto exchanges to close gaps in money laundering crimes. This case emerged just one month after Bithumb's Bitcoin distribution error worth billions of dollars to its users. This regulatory tightening reaffirms South Korea's position in strengthening compliance with financial standards in the global digital ecosystem.