Bithumb Hit with Record Fine for AML and KYC Violations

South Korean regulators have taken action against Bithumb, one of the largest cryptocurrency exchanges in the country, for violating anti-money laundering controls and customer verification rules. According to reports, the Financial Intelligence Unit (FIU) has fined Bithumb ₩36.8 billion, which is approximately $24.6 million.

The penalty is the largest fine imposed on a crypto exchange in South Korea. The FIU also ordered a six-month partial suspension of Bithumb's services for new users. During this period, new accounts will not be able to use certain services, including deposits and withdrawals. However, existing users will continue to trade and move funds on the exchange as usual.

The breaches were discovered during on-site inspections carried out between 2024 and 2025. Regulators reviewed the compliance systems of five major cryptocurrency exchanges operating in South Korea, including Upbit, Coinone, Korbit, and Gopax. The inspection found millions of breaches tied to anti-money laundering controls and customer verification rules.