Bithumb faces FIU sanctions after Upbit’s 35.2bn won fine

FIU proposes six-month partial business suspension, fines in tens of billions won

south korea’s Financial Intelligence Unit (FIU) has issued Bithumb a preliminary notice proposing a six-month partial business suspension and administrative fines in the tens of billions of won, as reported by Seoul Economic Daily. The fine could match or exceed the 35.2 billion won imposed on Upbit, though the final amount and scope remain subject to the FIU’s decision.

The notification is not a final order. Details such as which product lines are suspended and when measures would begin will be determined after the agency completes its sanctioning process.

Why Bithumb’s case matters for South Korea’s crypto compliance

As reported by CoinEdition, the proposed measures point to concerns beyond routine KYC checks, extending to exchange infrastructure and governance. Observers view the breadth of contemplated actions as a signal that regulators are testing tougher, system-level expectations for virtual asset service providers.

Recent incidents involving trading and accounting controls have intensified scrutiny. “These incidents reflect control system weaknesses in ledger operations and internal accounting,” said Lee Chan-jin, Governor of the Financial Supervisory Service.

Based on AML Network’s reporting, a six-month partial suspension has been proposed in connection with AML and KYC deficiencies. In practice, partial suspensions can constrain onboarding or certain transfer functions, while specifics will depend on the final order’s definitions.

Until terms are finalized, day-to-day services may operate with adjustments. Users could encounter changes to certain flows or added verification steps aligned with the regulator’s remedial priorities.

How this compares to Upbit’s 35.2 billion won fine

Key differences: suspension length, fine magnitude, compliance scope

according to BTCC’s summary, Upbit received a 35.2 billion won fine in November 2025 for breaches of the Specified Financial Information Act, including broad KYC failures. That case also carried a three-month suspension affecting new-user crypto transfers.

SpendNode notes bithumb faces a proposed six-month partial suspension, double Upbit’s window, alongside the possibility of higher monetary penalties. The framing suggests a wider compliance lens that includes operational controls, not just customer identification.

What regulators signaled about precedent and enforcement focus

This case is being watched as a potential precedent for the industry, with enforcement emphasis on AML/KYC execution, timely suspicious transaction reporting, and robust exchange control systems. The sanctions landscape appears to be moving toward longer suspensions and broader remediation mandates.

FAQ about Bithumb penalty

Will Bithumb’s fine exceed Upbit’s 35.2 billion won penalty?

The Financial Intelligence Unit’s preliminary notice indicates fines in the tens of billions of won, which could match or exceed 35.2 billion, depending on the final order.

What specific AML/KYC and internal control violations did regulators identify at Bithumb?

T.SignalPlus reports incomplete identity verification, delayed or missing suspicious transaction reports, transactions with unregistered platforms, and weaknesses in order‑book and ledger controls.