South Korean regulators have imposed a record-breaking penalty on crypto exchange Bithumb, fining the platform 36.8 billion won (around $24.5 million) and enforcing a six-month partial business suspension after uncovering millions of anti-money laundering violations.
The sanctions follow an extensive compliance inspection by the Financial Intelligence Unit (FIU), which operates under the Financial Services Commission (FSC). According to a report by Yonhap News Agency, authorities detected roughly 6.65 million breaches tied to customer verification failures, weak transaction monitoring, and poor record-keeping practices.
‘특금법 위반’ 빗썸 영업정지 6개월 중징계…과태료 368억원도 https://t.co/mr5dm1TFBZ
— 연합뉴스 (@yonhaptweet) March 16, 2026
Investigators also found that Bithumb processed 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers (VASPs), directly violating South Korea’s strict AML regulations.
Record penalty and six-month restrictions
The FIU’s sanctions deliberation committee approved the penalties after reviewing Bithumb’s compliance with the Act on Reporting and Use of Specific Financial Transaction Information. The ruling marks the largest fine ever imposed on a South Korean cryptocurrency exchange.
As part of the enforcement action, Bithumb will be prohibited from processing external crypto transfers for new users for six months, from March 27 to September 26. However, the restrictions will not affect existing customers.
Current users can continue trading and moving crypto assets normally on the platform. New customers will still be able to buy and sell digital assets and deposit or withdraw Korean won, but they will not be allowed to transfer crypto to external wallets during the suspension period.
Regulators said the FIU had repeatedly warned the exchange to stop facilitating transactions with unregistered overseas crypto firms. Despite these warnings, Bithumb allegedly failed to implement adequate measures to block such activity.
Earlier this month, on March 9, the FIU issued a preliminary notice outlining its intention to impose a partial suspension before finalizing the penalties.
South Korea intensifies AML enforcement in crypto
The action against Bithumb forms part of a broader regulatory push by South Korea to strengthen anti-money laundering oversight in the digital asset industry.
Earlier enforcement actions targeted other major exchanges. In February 2025, regulators imposed a three-month restriction on crypto deposits and withdrawals for new users of Upbit after discovering similar violations involving unregistered VASPs. The exchange was also fined 35.2 billion won (approximately $23.5 million).
The combination of the recent enforcement action and a separate issue, a February 2026 system error that erroneously credited 620,000 BTC to users, has resulted in the postponement of Bithumb’s initial public offering (IPO). Meanwhile, in December 2025, crypto exchange Korbit was fined 2.73 billion won (around $1.8 million) and received an institutional warning for failing to meet AML and customer verification requirements.
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