- South Korea fines Bithumb $25M after 6.65M AML and KYC violations
- Regulators impose six month partial suspension on Bithumb operations
- Over 3.5M identity verification failures found during inspections
South Korea has taken firm action against one of its largest crypto exchanges, as Bithumb faces a $25 million fine and a six month partial suspension. Regulators identified millions of AML and KYC violations, raising concerns about compliance systems and internal controls at the platform during recent inspections.
Bithumb Hit With 25M Fine in South Korea over AML Compliance Breaches
South Korea’s Financial Intelligence Unit has imposed a 36.8 billion won fine on Bithumb. The penalty equals about $25 million. The regulator also ordered a six month partial suspension of its operations.
Bithumb Fined $25M by South Korea for AML Violations
South Korea’s Financial Intelligence Unit imposed a ₩36.8B ($25M) fine and a 6-month partial business suspension over millions of AML and KYC compliance breaches.@BithumbOfficial pic.twitter.com/hNEs3Qv9Ma
— Crypto Patel (@CryptoPatel) March 17, 2026
The action follows inspections of major crypto exchanges between 2024 and 2025. These reviews covered Upbit, Bithumb, Coinone, Korbit, and Gopax. Authorities found repeated failures in anti money laundering and customer verification duties.
Officials linked the violations to weak compliance systems. The Act on Reporting and Use of Specific Financial Transaction Information requires these systems.
The law requires strict monitoring of financial activity. The regulator stated that the penalty reflects the scale of the breaches. It also considered legal responsibility and operational failures tied to compliance duties.
Millions of Violations Found During Regulatory Review
Investigators reported about 6.65 million compliance violations on Bithumb’s platform. These breaches were tied to key regulatory requirements. Around 3.55 million cases involved failures in proper customer identity verification.
Another 3.04 million cases were linked to not restricting certain transactions as required. Authorities said exchanges must verify users and track transaction patterns. These steps help prevent illegal financial activity. When these controls fail, risks increase across the system.
Disciplinary action also targeted senior staff. Bithumb’s chief executive received a formal reprimand. The exchange’s reporting officer was suspended for six months. Regulators stated that internal oversight failed to meet legal standards.
Partial Suspension and Ongoing Market Activity
The six month suspension affects only part of Bithumb’s business. Regulators did not order a full shutdown of the exchange. Trading services are expected to continue in a limited capacity. South Korea has strict rules for digital asset platforms. Exchanges must identify users and monitor transactions at all times. They must also block suspicious activity linked to financial crime.
Despite the penalty, trading activity remains strong on Bithumb. Data shows that Korean won pairs dominate the platform. Over 92% of trading volume is tied to KRW markets. XRP against KRW leads with about 14.68% of total volume. BTC and ETH pairs follow with over 11%and 10%. USDT also holds a large share.
The exchange recorded about $724 million in daily trading volume. This shows that user activity has continued even after the enforcement action. Regulators are expected to maintain close oversight of crypto exchanges. The recent action signals continued enforcement of AML and KYC rules across the sector.
