South Korea Imposes Major AML Penalties on Bithumb Amid Crackdown
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 03 2026- AML Compliance Failures: Following a March 2025 inspection, South Korea's Financial Intelligence Unit (FIU) found Bithumb guilty of multiple compliance failures, including inadequate customer due diligence, which could lead to penalties similar to Upbit's $25 million fine, highlighting severe internal control deficiencies.
- Insufficient Customer Verification: Bithumb failed to adequately verify user identities, with issues such as unclear photos and improper address checks, and the FIU noted that these problems are systemic and structural, potentially resulting in harsher penalties.
- Lack of Transaction Monitoring: The exchange allowed trades by unverified users and failed to report suspicious transactions, with the FIU's investigation suggesting manipulative practices in order book management, which could further exacerbate the severity of penalties.
- Market Trust Crisis: The FIU emphasized that Bithumb's compliance issues stem from rapid growth outpacing compliance infrastructure, and it plans to intensify scrutiny of major exchanges to restore public trust in the crypto industry.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
