TechFlow News: On March 15, South Korea’s cryptocurrency exchange Bithumb received advance notice from the Financial Intelligence Unit (FIU) that it faces a six-month partial business suspension for violating anti-money laundering (AML) obligations under the Act on Reporting and Using Specified Financial Transaction Information. The FIU also issued an accountability warning to Bithumb’s CEO. South Korea’s financial authorities plan to convene the AML Sanctions Review Committee on March 16 to finalize the penalty decision.
The anticipated penalty is expected to exceed the previous sanctions imposed on Dunamu—the operator of Upbit—which included a 35.2 billion KRW fine and a three-month partial business suspension for regulatory violations. Given Bithumb’s larger number of violations, industry observers widely expect its fine to set a new record high. Bithumb responded that it remains at the pre-notification stage and will fully present its remediation efforts through subsequent formal procedures.
