South Korean financial regulators have fined cryptocurrency exchange Bithumb 36.8 billion won, roughly $24.5 million, and ordered a six month partial suspension of certain services after uncovering widespread violations of anti money laundering regulations. The decision comes after a detailed inspection by the Financial Intelligence Unit, which operates under the Financial Services Commission.

The penalty is the largest fine imposed on a crypto exchange in South Korea so far and signals the government’s continued push to tighten compliance within the digital asset industry.

Millions of Violations Discovered During Inspection

During the inspection, regulators found approximately 6.65 million instances where the exchange failed to comply with anti money laundering requirements. According to a report by Yonhap News Agency, the violations included lapses in customer identity verification, improper transaction monitoring and inadequate record keeping.

Authorities also discovered that the exchange facilitated 45,772 cryptocurrency transfers linked to 18 overseas virtual asset service providers that were not registered with South Korean authorities. Such transactions violate local AML regulations that require exchanges to interact only with properly registered foreign crypto firms.

These findings raised concerns about the exchange’s internal compliance systems and its ability to monitor cross border digital asset transactions.

Partial Suspension To Begin In Late March

Under the sanction imposed by the Financial Intelligence Unit, Bithumb will face a six month restriction on certain services beginning March 27 and lasting until Sept. 26.

During this period, the exchange will not be allowed to process external cryptocurrency transfers for new customers. However, the suspension does not affect the platform’s existing users. Current customers will still be able to trade digital assets and transfer funds without interruption.

New customers will also retain limited access to the platform. They will be able to buy and sell cryptocurrencies and deposit or withdraw Korean won, but they will not be permitted to send crypto assets outside the exchange.

Regulators Say Warnings Were Ignored

According to the Financial Intelligence Unit, regulators had repeatedly warned the exchange to stop processing transactions involving unregistered overseas crypto firms.

Despite those warnings, the agency said the exchange failed to introduce effective safeguards to block such transactions. Officials concluded that the platform did not take adequate steps to strengthen its compliance measures.

Earlier in March, the FIU had already issued a preliminary notice to the exchange indicating that a six month partial suspension could be imposed. After reviewing the case through a sanctions deliberation committee, the regulator finalized the penalties.

Wider Crackdown on Crypto Exchanges

The action against Bithumb is part of a broader regulatory effort by South Korean authorities to enforce strict anti money laundering standards across the cryptocurrency sector.

Earlier this year, regulators also took action against Upbit, the country’s largest digital asset exchange. In February 2025, the FIU imposed a three month restriction on crypto deposits and withdrawals for new customers after identifying similar violations related to unregistered overseas virtual asset service providers. The exchange was also fined 35.2 billion won, about $23.5 million.

Another platform, Korbit, faced penalties in December 2025. The FIU imposed a fine of 2.73 billion won, around $1.8 million, and issued an institutional warning for shortcomings in anti money laundering controls and customer verification procedures.

These measures indicate that regulators are increasing oversight of the country’s digital asset trading platforms as they seek to prevent illicit financial activity and strengthen compliance within the rapidly growing crypto market.