Bithumb, one of South Korea's largest cryptocurrency exchanges, has faced severe sanctions for violating anti-money laundering (AML) rules. The Financial Intelligence Unit (FIU), the country's financial intelligence authority, fined the exchange a total of 36.8 billion won (approximately $24.6 million) and imposed a partial operation restriction for six months. According to South Korean media reports, this sanction is the largest AML fine ever imposed on the country's crypto market. Authorities stated that millions of violations were detected during audits and that Bithumb failed to adequately comply with financial crime prevention rules.
6.65 million violations detected
The FIU's investigations revealed that Bithumb committed approximately 6.65 million separate violations. A significant portion of these violations were related to customer verification processes (KYC).
According to the report, approximately 3.55 million cases were linked to the failure to properly verify user identity. The other 3.04 million violations are related to the exchange's failure to stop certain transactions that should have been blocked in a timely manner or to implement the necessary control mechanisms. Furthermore, audits revealed that Bithumb facilitated 45,772 transfers linked to 18 unregistered foreign crypto service providers (VASPs). According to South Korean law, transactions with such platforms must be strictly monitored and, in some cases, completely blocked.
Restrictions will be applied to new users
According to the sanctions decision, Bithumb's operations will not be completely suspended. However, for six months between March 27 and September 26, some services will be restricted for new users.
During this period, newly registered users will not be allowed to make external crypto transfers. Existing users, however, will be able to continue trading, buying and selling assets, and making withdrawals through the platform.
New users will be able to buy and sell crypto and deposit and withdraw Korean won, but will be temporarily barred from certain transactions such as transfers to external wallets.
Sanctions also imposed on Bithumb management
The investigation did not only impose corporate penalties. The regulatory body also took disciplinary action against Bithumb's senior management.
Accordingly, the exchange's CEO received a formal warning, while the company's compliance and reporting manager was suspended for six months. This decision reveals the regulators' tendency to hold the management teams of crypto companies directly accountable.
Audits were conducted during the 2024–2025 period
The violations in question emerged during a comprehensive audit process targeting the largest crypto exchanges operating in South Korea. FIU officials conducted field inspections at five of the country's leading exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, between 2024 and 2025.
The audits aimed to assess the adequacy of anti-money laundering and customer verification processes.
Tightening regulation in the South Korean crypto market
The penalty imposed on Bithumb is seen as part of the increasing regulatory pressure on the crypto sector in South Korea. The FIU has recently been pursuing a more aggressive audit policy to address compliance deficiencies in the sector. For example, in 2025, Dunamu, the operator of Upbit, the country's largest crypto exchange, was fined 35.2 billion won and given a three-month restriction on new user transactions due to similar compliance deficiencies. Rival exchange Korbit faced a 2.73 billion won fine and an institutional warning for AML violations.
A difficult period for Bithumb
Founded in 2014, Bithumb is considered one of South Korea's largest crypto exchanges in terms of trading volume. According to market data, the platform is among the most active digital asset trading centers in the country.
However, the latest sanctions decision is considered a new development that could damage the exchange's reputation. Moreover, this decision comes immediately after another technical error that Bithumb recently experienced.
Last month, a glitch on the platform resulted in billions of dollars worth of Bitcoin being accidentally distributed to some users, an event that caused a major stir in the crypto community.
