South Korea’s Financial Intelligence Unit (FIU), the country’s anti-money laundering watchdog, has announced a substantial fine of 37 billion won (approximately $24.8 million) against cryptocurrency exchange Bithumb. The penalty also includes a six-month partial suspension of business operations due to deficiencies in customer verification procedures and dealings with unregistered partners.
The FIU, operating under the Financial Services Commission, stated that Bithumb failed to adequately verify the identities of its users in approximately 6.59 million instances, violating anti-money laundering regulations.
The investigation also revealed that Bithumb facilitated around 45,000 transactions involving 18 unregistered overseas cryptocurrency exchanges, further contributing to the regulatory breaches.
According to the FIU, Bithumb’s chief executive officer will receive an official reprimand as a result of these violations.
Bithumb has been granted a 10-day period by the FIU to present its statement of opinion before the fine is officially finalized and implemented.
