Bithumb Faces Proposed Six-Month Suspension Over Anti-Money Laundering Violations

Bithumb, a major cryptocurrency exchange in South Korea, is facing regulatory scrutiny due to alleged anti-money laundering (AML) violations. According to reports, the Financial Intelligence Unit has issued a preliminary notice proposing a six-month partial suspension of Bithumb's operations.

The proposed restriction would mainly impact newly registered users, limiting their ability to transfer virtual assets on the platform. Existing users would still be able to trade and move funds without restrictions.

The regulators have cited dealings with unregistered overseas crypto operators and weak customer verification procedures as reasons for the proposed penalty. These activities are considered violations under South Korea's AML compliance regulations.