Bithumb Could Face Six-Month Business Suspension Over AML Breaches

Financial authorities plan to impose significant sanctions on virtual asset exchange Bithumb for breaching anti-money laundering obligations.

The measures could include a six-month partial suspension of its business.

The Financial Intelligence Unit (FIU), which operates under the Financial Services Commission, has reportedly issued the exchange with a prior notice of sanctions for violations of the Act on Reporting and Using Specified Financial Transaction Information.

Authorities determined that Bithumb continued to conduct transactions with unreported overseas virtual asset business operators, constituting a breach of the regulation.

Proposed measures include a six-month partial suspension of business activities, a reprimand warning for the company’s CEO, and the dismissal of its reporting officer.

Industry sources have also suggested that the potential fines could amount to tens of billions of Korean won, according to Chosun Biz.

Authorities reportedly linked the sanctions in part to Bithumb’s failure to adequately fulfil its KYC obligations.

A Bithumb official said,

adding that

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