South Korean cryptocurrency exchange Bithumb has received a preliminary notice of sanctions that could lead to a six-month partial business suspension. The Financial Intelligence Unit (FIU) cited transactions with unregistered overseas virtual asset businesses and failures in Know Your Customer procedures.
The proposed restriction would only affect virtual asset transfers for newly registered users, leaving existing customer operations unaffected. The FIU also proposed disciplinary action against the exchange's chief executive. This decision is not final and will undergo a review process, with a sanctions deliberation committee scheduled for later this month.
This action follows increased regulatory oversight of digital asset platforms in South Korea. Previously, Upbit operator Dunamu was fined and partially suspended, and Korbit received a fine and warning for similar compliance issues. Bithumb, founded in 2014, is one of the country's largest exchanges.