Major fine and partial suspension for Bithumb
The Bithumb cryptocurrency exchange, one of the largest in South Korea, found itself in the spotlight of local regulators. As a result of the inspection, Bithumb was fined 31.5 billion won (about $24.5 million) and received an order to suspend part of its activities for 6 months.
The main reason is the massive violations of anti-money laundering (AML) and counter-terrorist financing (CTF) requirements. Regulators have identified 6.65 million cases of non-compliance with AML/CTF rules, including 45,772 cryptocurrency transactions involving 18 unregistered overseas virtual asset service providers (VASPs).
The fine and restriction of Bithumb's activities are another example of the South Korean authorities' tough stance on the cryptocurrency industry. Last year, the regulator also fined another major exchange, Upbit, and in 2021 a licensing system for crypto companies was introduced in the country.
Experts note that such measures by the South Korean regulators are aimed at increasing the transparency and accountability of the cryptocurrency market, especially in the field of anti-money laundering. This trend is also observed in other countries where authorities are tightening oversight of crypto exchanges and other virtual asset providers.