Crypto exchange Bithumb risks a partial business suspension for negligence around money laundering and customer verification practices, according to local media reports.
Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly facing a possible partial business suspension of up to six months as regulators step up enforcement over anti-money laundering controls.
South Korea’s Financial Intelligence Unit (FIU) gave Bithumb a preliminary notice of a six-month partial suspension over alleged anti-money laundering and know-your-customer failures under the Act on Reporting and Using Specified Financial Transaction Information, according to local media reports on Monday. The regulator reportedly cited concerns over dealings with unregistered overseas virtual asset service providers and shortcomings in customer due diligence.
The FIU also issued a reprimand warning to Bithumb’s CEO, a warning considered a heavy penalty, which may lead to restrictions on his reappointment or future roles. Regulators are expected to hold a sanctions review later in March before deciding on any final measures. Bithumb told News1 that the action remains at the pre-notification stage and that the scope of any sanctions could still change.
