South Korea’s second-largest cryptocurrency exchange may be suspended for up to six months

The South Korean cryptocurrency exchange Bithumb may face serious sanctions from financial authorities.

According to information published by the local broadcaster Korean Broadcasting System (KBS), the exchange is expected to be partially suspended for up to six months, and a large fine will also be imposed for violations of anti-money-laundering obligations. It is also reported that disciplinary measures against the company’s top management are being considered.

According to the report, financial regulators identified deficiencies in customer identity verification processes as the main reason for the fine. The investigation focused on the insufficient implementation of “Know Your Customer” (KYC) procedures, which require cryptocurrency exchanges to identify their users.

It was also claimed that the authorities had previously warned Bithumb about a possible fine amounting to tens of billions of South Korean won for these violations.

The planned sanctions include a partial suspension of operations for six months. However, it is noted that this penalty will not lead to a complete shutdown of all exchange operations. In this context, some services, such as users withdrawing their crypto assets to external wallets, may be temporarily restricted.

In its statement on the matter, Bithumb said that it plans to present its position in detail as the process continues. The company stated that it will present its defense at upcoming meetings with regulators and will take the necessary steps depending on the outcome of the process.

In South Korea, the cryptocurrency market has been under strict regulatory oversight in recent years. Authorities closely monitor exchanges’ compliance with regulatory requirements in order to reduce the risk of money laundering. In this context, sanctions against Bithumb are seen as evidence that regulatory pressure on the country’s crypto sector continues to increase.

See also: "Dubai authorities ban operations of crypto exchange KuCoin"

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