Bithumb Receives Business Suspension Notice for AML Violations

Bithumb, South Korea’s second-largest cryptocurrency change by buying and selling quantity, is reportedly dealing with a attainable partial enterprise suspension of as much as six months as regulators step up enforcement over anti-money laundering controls.

South Korea’s Monetary Intelligence Unit (FIU) gave Bithumb a preliminary discover of a six-month partial suspension over alleged anti-money laundering and know-your-customer failures beneath the Act on Reporting and Utilizing Specified Monetary Transaction Data, in response to native media reviews on Monday. The regulator reportedly cited issues over dealings with unregistered abroad digital asset service suppliers and shortcomings in buyer due diligence.

The FIU additionally issued a reprimand warning to Bithumb’s CEO, a warning thought of a heavy penalty, which can result in restrictions on his reappointment or future roles. Regulators are anticipated to carry a sanctions evaluate later in March earlier than deciding on any ultimate measures. Bithumb instructed News1 that the motion stays on the pre-notification stage and that the scope of any sanctions might nonetheless change.

“This measure will not be but a confirmed sanction, however is a pre-notification stage, and there could also be some changes within the sanctions trial,” a Bithumb spokesperson stated, including that “restrictions solely apply to the switch (withdrawal) of digital property by new members.”

If finalized, the suspension would prohibit new customers from transferring digital property off the platform, in response to the report. Bithumb didn’t instantly reply to Cointelegraph’s request for remark.

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The discover follows scrutiny on South Korea’s Monetary Companies Fee’s failure to detect vital flaws tied to Bithumb’s inside programs after the change mistakenly credited 2,000 Bitcoin (BTC) per person as a substitute of two,000 Korean gained ($1.40) throughout a promotional occasion on Feb. 6, distributing a complete of 620,000 BTC (value round $43 billion on the time).

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South Korean regulators impose stricter cash laundering rules

South Korean regulators are looking for to impose stricter sanctions on crypto exchanges suspected of AML and KYC violations. 

In November 2025, FIU imposed a partial three-month suspension and a 35.2 billion gained ($25 million) effective on cryptocurrency change Upbit’s father or mother firm, Dunamu, for comparable violations. 

Crypto change Korbit additionally obtained a warning and a 2.73 billion gained ($1.9 million) effective in December 2025.

Each administrative penalties stemmed from issues associated to dealings with abroad crypto service suppliers and neglect of buyer verification practices.