South Korea’s Financial Intelligence Unit fined crypto exchange Bithumb 37 billion won - approximately $24.8 million - for systemic failures in customer due diligence.
The regulator found Bithumb failed to verify customer identities in 6.59 million cases and processed roughly 45,000 transactions with 18 unregistered foreign exchanges.
Bithumb faces a six-month partial business suspension. CEO Lee Jae-won will receive an official reprimand. The exchange has 10 days to respond before the penalty is finalized.
The enforcement action comes amid rapid crypto adoption in South Korea: 16.29 million accounts exist across the nation’s top five exchanges, with over 500,000 new investors joining in November 2024 alone.