Bithumb faces proposed 6-month partial ban over South Korea AML breaches

Finance

Share

Share this article

Copy linkX (Twitter)LinkedInFacebookEmail

Bithumb faces proposed 6-month partial ban over South Korea AML breaches

The suspension, according to local media reports, would only restrict virtual asset transfers for newly registered users, not affecting existing customer operations.

By Francisco Rodrigues, AI Boost|Edited by Stephen Alpher

Mar 9, 2026, 12:42 p.m.

Make us preferred on Google

(Photo by Daniel Bernard on Unsplash/Modified by CoinDesk)

What to know:

• Bithumb reportedly received a preliminary notice from South Korea’s FIU regarding a proposed six-month partial suspension and a reprimand for its CEO.
• The notice cites alleged violations for poor AML/KYC enforcement and transactions with unregistered overseas platforms.
• The suspension would only restrict virtual asset transfers for newly registered users, not affecting existing customer operations.

South Korean cryptocurrency exchange Bithumb has received a preliminary notice of sanctions that could lead to a six-month partial business suspension, local media reports.

The notice came from the Financial Services Commission’s Financial Intelligence Unit (FIU), which oversees anti-money laundering compliance for crypto firms under the Act on Reporting and Using Specified Financial Transaction Information.

Regulators said Bithumb continued transactions with overseas virtual asset businesses that were not registered in South Korea and failed to properly enforce certain Know Your Customer procedures. The FIU proposed a six-month partial suspension and disciplinary action against the exchange’s chief executive.

The restriction would apply only to virtual asset transfers by newly registered users. Existing customers would still be able to deposit and withdraw Korean won and cryptocurrencies and trade on the platform, according to the report.

The decision isn’t final and may change during a review process. The FIU plans to hold a sanctions deliberation committee later this month to determine the final penalty.

The case comes as South Korean regulators tighten oversight of digital asset platforms. LAst year, the FIU imposed a three-month partial suspension and a 35.2 billion won ($23.65 million) fine on Dunamu, the operator of Upbit, for similar compliance failures. Korbit received a similar 2.73 billion won fine and an institutional warning as well.

Founded in 2014, Bithumb is one of South Korea’s largest exchanges and ranks second in domestic trading volume behind Upbit according to CoinGecko data. Together with Coinone and Korbit, these platforms account for the vast majority of the crypto trading activity of exchanges registered in the country.

The sanctions come after last month Bithumb mistakenly distributed billions of dollars worth of bitcoin to users, prompting the country’s financial watchdog to step up oversight of cryptocurrency markets.

CoinDesk has reached out to Bithumb for comment but hasn't heard back at the time of writing.

BithumbSouth Korea

AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

More For You

Pudgy Penguins: Challenging the Pokemon and Disney Legacy in the Global IP Race

By CoinDesk Research

Feb 27, 2026

Commissioned byPudgy Penguins

CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events.

What to know:

• Disrupting a Stagnant Market: Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product.

View Full Report

More For You

KAST raises $80 million at $600 million valuation to expand stablecoin payments platform

By Olivier Acuna|Edited by Stephen Alpher

3 minutes ago

Funding will support product expansion, licensing and compliance as the company scales a platform for cross-border stablecoin payments.

What to know:

• KAST, a stablecoin-powered cross-border payments platform, raised $80 million in Series A funding led by QED Investors and Left Lane Capital at a reported $600 million valuation.
• The company plans to use the capital to expand its product, licensing and compliance efforts, and team.
• KAST aims to tap into the largely untapped market for real-world stablecoin payments by connecting digital dollars to local payout systems and expanding across North America, Latin America and the Middle East, including with a new KAST Business offering.

Read full story

Latest Crypto News

KAST raises $80 million at $600 million valuation to expand stablecoin payments platform

3 minutes ago

U.S. Treasury signals shift on crypto mixers, acknowledges legitimate privacy uses

23 minutes ago

Michael Saylor's Strategy made $1.3 billion bitcoin purchase last week

35 minutes ago

Bitcoin is beating stocks and gold as the Middle East conflict rattles global markets

1 hour ago

Bitcoin stays calm while other markets panic: key levels to watch

1 hour ago

Nasdaq and Kraken are teaming up to let you trade tokenized stocks

1 hour ago

Top Stories

Bitcoin rises as oil spikes, equities drop

2 hours ago

U.S. isn’t really exposed to oil shocks and that might be helping bitcoin stay resilient

6 hours ago

Nigel Farage takes 6% stake in UK bitcoin treasury firm Stack BTC

3 hours ago

Oil pulls back from 25% spike as G7 discusses emergency reserve release

5 hours ago

Bitcoin could face deeper downside as odds of U.S. market meltdown rise to 35%

7 hours ago

Trump's cyber strategy vows to 'support the security' of cryptocurrencies and blockchain

Mar 7, 2026