South Korean regulators have imposed a fine of 36.8 billion won, roughly $24.5 million, on the cryptocurrency exchange Bithumb after uncovering large-scale violations of anti-money laundering rules. Authorities have also ordered a six-month partial suspension of certain services following an inspection that revealed millions of compliance failures.
The action was taken by the Financial Intelligence Unit, which operates under the Financial Services Commission. According to reports from Yonhap News Agency, regulators identified approximately 6.65 million violations during a detailed AML inspection of the exchange’s operations.
Millions of AML Violations Detected
Regulators said the violations covered several areas related to anti-money laundering compliance. These included shortcomings in verifying customer identities, enforcing transaction limits and maintaining proper records.
Investigators also found that the exchange processed 45,772 cryptocurrency transfers involving 18 overseas virtual asset service providers that were not registered under South Korean regulations. Such transactions are prohibited under the country’s AML framework.
Authorities said these transactions were carried out despite clear rules requiring crypto exchanges to block dealings with unregistered foreign platforms.
Record Fine for a Crypto Exchange
The penalty represents the largest fine ever imposed on a South Korean cryptocurrency exchange. The decision followed a review by a sanctions deliberation committee that examined whether the exchange had complied with the Act on Reporting and Use of Specific Financial Transaction Information.
The Financial Intelligence Unit said it had previously warned Bithumb to stop facilitating transactions with unregistered overseas firms. However, the exchange reportedly failed to fully implement measures that could block those transfers.
Officials concluded that the company had not taken sufficient steps to prevent such transactions, leading to the record penalty.
Six-Month Restrictions for New Customers
Along with the fine, regulators have ordered a six-month partial business suspension. The restrictions will run from March 27 to September 26.
During this period, the exchange will not be allowed to process external cryptocurrency transfers for new customers. However, existing users will not face restrictions on trading or transferring digital assets.
New customers will still be able to open accounts and trade cryptocurrencies on the platform. They will also be allowed to deposit and withdraw Korean won, though external crypto transfers will remain blocked for them until the suspension ends.
Earlier Warning From Regulators
Before issuing the final sanction, the regulator had already signaled its concerns about the exchange’s compliance practices. On March 9, the Financial Intelligence Unit issued a preliminary notice informing the company that a six-month partial suspension was being considered.
The warning came after inspectors concluded that the exchange continued to allow transactions with unregistered overseas crypto firms even after previous instructions to stop such activity.
Following the notice, regulators completed their review and confirmed the final penalty.
Wider AML Crackdown on Crypto Exchanges
The action against Bithumb is part of a broader enforcement drive by South Korean authorities to tighten anti-money laundering compliance across the crypto industry.
Earlier this year, the regulator also penalized Upbit. In February 2025, the exchange was fined 35.2 billion won, about $23.5 million, and faced a three-month restriction on crypto deposits and withdrawals for new customers after violations related to dealings with unregistered overseas VASPs.
Another exchange, Korbit, faced enforcement action in December 2025. Authorities imposed a fine of 2.73 billion won, roughly $1.8 million, and issued an institutional warning after identifying problems related to AML compliance and customer identity verification.
These actions indicate that South Korea’s financial regulators are intensifying oversight of the digital asset sector and pushing exchanges to adopt stricter compliance systems to prevent illicit financial activity.
