South Korea Hits Bithumb With $24.5M Fine Over AML Violations

South Korea has fined crypto trade Bithumb 36.8 billion received (about $24.5 million) and imposed a six-month partial enterprise suspension after discovering widespread violations of Anti-Cash Laundering (AML) guidelines, in keeping with a Yonhap Information Company report. 

In response to Yonhap, regulators recognized about 6.65 million violations throughout an AML inspection, together with failures associated to buyer id verification, transaction restrictions and record-keeping necessities. Authorities discovered Bithumb facilitated 45,772 crypto transfers involving 18 unregistered abroad digital asset service suppliers (VASPs), in violation of South Korea’s AML guidelines. 

The Monetary Intelligence Unit (FIU) beneath the Monetary Providers Fee (FSC) reportedly selected the penalties following a sanctions deliberation committee assembly reviewing the trade’s compliance with the Act on Reporting and Use of Particular Monetary Transaction Data. 

The sanction contains the most important positive but imposed on a South Korean crypto trade, following an ongoing regulatory crackdown on AML compliance.

South Korea imposes a six-month partial ban on Bithumb

Beneath the measures, Bithumb will probably be banned from processing exterior crypto transfers for brand spanking new clients for six months, from March 27 to Sept. 26.

Nonetheless, present customers will face no buying and selling restrictions, whereas new clients can nonetheless purchase or promote crypto and deposit or withdraw Korean received from the trade. 

Associated: South Korea plans to make use of AI for crypto tax enforcement

The FIU mentioned it had repeatedly warned Bithumb to halt transactions with unregistered abroad crypto companies. Nonetheless, the regulator mentioned the trade did not comply and was unable to implement efficient blocking measures. 

On March 9, the FIU gave Bithumb a preliminary discover of a six-month partial suspension, citing its considerations over Bithumb’s violations earlier than figuring out the ultimate sanctions.

South Korea’s broader AML enforcement drive

Aside from Bithumb, the FIU has additionally beforehand penalized different South Korean exchanges for AML violations.

In February 2025, the regulator imposed a three-month restriction on crypto deposits and withdrawals for brand spanking new Upbit clients after discovering violations tied to coping with unregistered VASPs. Upbit additionally acquired a 35.2 billion received (about $23.5 million) penalty.

The crackdown later reached crypto trade Korbit. In December 2025, the FIU imposed a 2.73 billion received (about $1.8 million) positive and an institutional warning on the trade over AML and customer-verification breaches.