South Korean Regulators Propose Six-Month Partial Suspension for Bithumb Exchange Over AML Failures
South Korea's Financial Intelligence Unit (FIU) has moved to impose a six-month partial suspension on Bithumb, the country's second-largest cryptocurrency exchange. The disciplinary measure follows alleged failures in anti-money laundering (AML) and know-your-customer (KYC) compliance under the Special Financial Transactions Act.
The proposed sanctions would primarily impact new users, restricting deposit and withdrawal services during the suspension period. Regulators specifically cited Bithumb's dealings with overseas crypto operators without proper reporting as a key concern.
Bithumb's case remains under review, with final determination expected during the March 16 sanctions meeting. The exchange could face additional disciplinary action against its chief executive if violations are confirmed.
