South Korea’s Financial Intelligence Unit has imposed a significant fine of $24.6 million and a six-month partial suspension on Bithumb, following the discovery of about 6.65 million violations related to anti-money laundering (AML) rules.

According to the Financial Services Commission, these violations involve two primary areas. Approximately 3.55 million instances were due to inadequate customer identity verification processes, whereas around 3.04 million cases pertained to transactions that should have been blocked but weren’t as mandated by law.

Impact and Scope of Suspension

The suspension affects only new user registrations; current customers can continue trading and transferring funds unhindered. Bithumb’s CEO received a formal warning, while the compliance officer was suspended for six months.

These findings were revealed during inspections of South Korea’s five largest crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—conducted between 2024 and 2025.

Regulatory Landscape

This action aligns with a broader trend of regulatory scrutiny in South Korea’s crypto sector. Previously, Dunamu, the operator of Upbit, faced similar sanctions, being fined $23.5 million and partially suspended for three months due to compliance issues. Meanwhile, Korbit was fined $1.8 million along with other warnings.

Founded in 2014, Bithumb is one of South Korea’s leading crypto exchanges by trading volume. Its recent regulatory setback comes after an earlier incident where the exchange mistakenly distributed billions of dollars worth of bitcoin to users, intensifying regulatory attention on its operations.