South Korea’s FIU Proposes Six-Month Bithumb Suspension Over KYC, Anti-Money Laundering Breaches

South Korea’s Financial Intelligence Unit regulates crypto exchanges under the Act on Reporting and Using Specified Financial Transaction Information, requiring them to comply with know-your-customer and anti-money laundering rules. Bithumb was implicated in 6.65 million KYC violations and transactions with unregistered overseas operators, making the case a significant part of South Korea’s tighter oversight of its five largest domestic exchanges.

The FIU issued its final ruling in 2025, imposing a 36.8 billion won fine, equivalent to about $24 million, and a six-month partial business suspension that restricted virtual-asset withdrawals by new members. Trading by existing users was not immediately affected. A South Korean court subsequently stayed the suspension in July 2025, citing precedent from the Dunamu case, pending the outcome of administrative litigation.