Bithumb Hit with ₩36.8B Fine, Faces 6-Month Business Ban

Key Insights:

• Bithumb fined $24.6M after authorities uncover 6.65M AML and KYC violations.
• Six-month suspension affects new accounts, while existing users continue trading without restrictions on the platform.
• Breaches were found during inspections of the largest cryptocurrency exchanges in South Korea between 2024 and 2025.

South Korean regulators have taken enforcement action against crypto exchange Bithumb, imposing a multibillion-won fine and restricting part of its operations. The decision follows an investigation that found millions of breaches tied to anti–money laundering controls and customer verification rules.

The Financial Intelligence Unit (FIU), which operates under the Financial Services Commission, announced the measures after reviewing compliance procedures at the exchange. Penalties include a large financial sanction and a temporary restriction on services for new users.

FIU Issues ₩36.8 Billion Fine Against Bithumb

The Financial Intelligence Unit fined Bithumb 36.8 billion won, roughly $24.6 million, according to local reports. Authorities said the exchange failed to meet several requirements under South Korea’s anti–money laundering framework and financial transaction reporting rules.

Bithumb Exchange News | Source: BSCN (X)

Investigators recorded about 6.65 million violations connected to compliance procedures. Around 3.55 million cases involved missing or incomplete identity verification for users. Financial platforms in South Korea must confirm customer identities before allowing trading activity, a rule designed to prevent illegal financial activity.

Regulators also identified about 3.04 million cases in which transactions that should have been restricted were allowed to proceed. In addition, the FIU reported 45,772 transactions that involved 18 overseas exchanges that were not registered with South Korean authorities.

The penalty is the largest fine imposed on a crypto exchange in the country. It exceeds the 35.2 billion won sanction issued to Upbit in 2025 after regulators found similar compliance failures.

Six-Month Restriction on New User Services

Alongside the financial penalty, the FIU ordered a six-month partial suspension affecting Bithumb exchange’s services for newly registered users. The measure focuses on account activity linked to new customers joining the platform.

During the suspension period, new accounts will not be able to use certain services, including deposits and withdrawals. Current users will continue to trade and move funds on the exchange as usual.

Authorities also imposed disciplinary measures on company staff. The chief executive of this crypto exchange received a reprimand warning from regulators. The reporting officer at the crypto exchange was suspended from duty for 6 months as part of the enforcement action.

The FIU said the penalty will be finalized after Bithumb is given time to respond. The crypto exchange has been allowed at least ten days to submit its position before regulators confirm the final decision.

Violations Found During Industry Checks

The breaches were discovered during on-site inspections carried out between 2024 and 2025. Regulators reviewed the compliance systems of the five largest cryptocurrency exchanges operating in South Korea.

The inspection covered Upbit, Bithumb, Coinone, Korbit, and Gopax. Authorities checked whether these platforms were properly verifying customer identities and monitoring transactions under the Act on Reporting and Using Specified Financial Transaction Information.

Earlier enforcement actions have also targeted other exchanges. In 2025, Upbit operator Dunamu received a 35.2 billion won fine and a three-month partial suspension after compliance gaps were found during the same regulatory review.

Korbit also faced penalties, including a 2.73 billion won fine and institutional warnings. These actions form part of ongoing supervision of the country’s digital asset trading platforms.

Bithumb was founded in 2014. It remains one of the largest cryptocurrency exchanges in South Korea by trading volume, according to market data from CoinGecko.

Bithumb Operational Error During Bitcoin Promotion

The exchange recently faced attention following an error during a promotional campaign on its platform. The event, known as the “Random Box,” was intended to distribute small rewards to participating users.

Winners were expected to receive between 20,000 and 50,000 Korean won. Reports from local media said the reward unit was mistakenly entered as Bitcoin rather than Korean won during the distribution process.

As a result, several users reportedly received at least 2,000 BTC each. Based on Bitcoin prices at the time, the value of each payment was estimated at around 196 billion won.

Screenshots shared online suggested the mistake briefly affected trading prices on the platform. At that time, Bitcoin fell more than 10 percent below broader market levels. Bithumb later said the incident did not lead to financial losses for customers.

The Financial Intelligence Unit stated that exchanges operating in the country must meet strict standards for identity verification and transaction monitoring. At the time of reporting, Bitcoin was trading near $73,800 across global markets. It soared by over 3% in the past 24 hours (per CoinGecko data).

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