Bithumb Faces Sanctions Review for Violation of Special Financial Transactions Act, Potential Fine May Exceed Upbit's 35.2 Billion KRW

Odaily News According to Korean media reports, the Korea Financial Intelligence Unit (FIU) will convene a sanctions review committee on March 16 to deliberate on the severity of sanctions against Bithumb for violating anti-money laundering obligations under the Special Financial Information Act (Special Financial Transactions Act). The FIU had previously issued a preliminary notice to Bithumb, which included a 6-month partial suspension of business and a warning of accountability for the representative director, a measure more severe than the 3-month partial suspension previously imposed on Upbit.

It is reported that the number of transactions between Bithumb and unregistered overseas exchanges is higher than that of Upbit. The number of transactions with unregistered exchanges is a primary criterion for determining the severity of sanctions. Previously, Upbit was fined 35.2 billion KRW and received a 3-month partial business suspension for 44,948 related transactions, while Korbit, which was involved in only 19 transactions, was fined only 2.7 billion KRW and received an institutional warning. Consequently, market observers believe Bithumb's fine could potentially exceed 37 billion KRW. A relevant official from the Financial Services Commission of Korea stated that the specific sanctions against Bithumb have not yet been finalized.