- Bithumb fined ₩36.8 billion($24.6M) and receives six-month partial business suspension for violating AML regulations.
- 6.65 million violations of the Special Financial Information Act identified during FIU inspections.
- CEO receives reprimand warning, reporting officer faces six-month suspension.
- Upbit operator Dunamu appeals ₩35.2 billion($24.6M) fine, temporarily suspending enforcement until legal review.
FIU Imposes Major Penalty on Bithumb
South Korea’s Financial Intelligence Unit (FIU), operating under the Financial Services Commission, announced on March 16 that it has imposed a six-month partial suspension of operations and a fine of 36.8 billion won($24.6M) on virtual asset exchange Bithumb.
The penalty was issued for violations of the Act on Reporting and Use of Specific Financial Information, commonly referred to as the Special Financial Information Act, which governs anti-money laundering (AML) compliance for digital asset service providers.
According to the FIU, the violations were discovered during on-site inspections of the country’s five major crypto exchanges – Upbit, Bithumb, Coinone, Korbit, and Gopax-conducted between 2024 and 2025.
Millions of Compliance Violations Identified
Regulators reported identifying approximately 6.65 million violations linked to Bithumb’s compliance procedures.
The breakdown includes:
- 3.55 million violations related to failures in customer identification obligations
- 3.04 million violations involving breaches of transaction restriction requirements
These obligations are key components of South Korea’s AML framework for virtual asset service providers.
Executive Disciplinary Measures Announced
In addition to the corporate penalty, the FIU also imposed disciplinary measures on company executives.
After reviewing the responsibility of individuals, the scale of violations, and the severity of legal breaches, regulators issued the following actions:
- Reprimand warning for the CEO
- Six-month suspension for the reporting officer
Upbit Operator Dunamu Appeals 35.2B Won Fine
Separately, Dunamu, the operator of the virtual asset exchange Upbit, has filed an objection to a 35.2 billion won fine previously imposed by the FIU. Industry sources reported on March 9 that Dunamu submitted a formal appeal challenging the regulator’s decision. The company has not issued an official public statement regarding the matter. The fine stemmed from violations discovered during an FIU inspection conducted in November of the previous year.
Enforcement Temporarily Suspended During Legal Review
Under regulatory procedures, the effect of the fine is temporarily suspended once an objection is filed. The final penalty amount will be determined through legal proceedings following the review process.
The fine followed earlier sanctions imposed in February of the same year, when authorities issued a three-month partial suspension of new business operations and disciplinary actions against employees for violations related to transactions with undeclared Virtual Asset Service Providers (VASPs).
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