South Korean crypto exchange Bithumb, which drew scrutiny last month for a "fat finger" error that nearly cost it $43bn, is again facing regulatory pressure. The exchange faces a potential six-month partial suspension of its business due to anti-money laundering (AML) violations, according to a report by Korean news outlet News1.
Bithumb Faces Six-Month Partial Ban for AML Violations, News1 Reports
10 March 2026 - 07:43 CET
The Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) recently issued a notice to the exchange regarding its dealings with "unreported overseas virtual asset operators" and its "neglect of customer due diligence," the report said. Bithumb’s CEO also faces possible disciplinary action.
Suspension details
The suspension, set to be finalized this month, would cover only transfers for new members, allowing the exchange to continue operations for existing users. A Bithumb spokesperson told News1 that it received a "preliminary notice" rather than a final sanction, noting the review process may result in "some adjustments".
The move comes as South Korean regulators intensify their oversight of the domestic crypto sector. Bithumb remains one of the largest platforms in the region, and any sustained restriction on its ability to onboard new capital could impact local market liquidity.
