Bithumb may be temporarily suspended in South Korea due to AML and KYC violations
10.03.2026
Major South Korean cryptocurrency exchange Bithumb has been threatened with a six-month suspension after discovering serious violations of anti-money laundering (AML) and customer identification procedures (KYC). The Financial Service of South Korea (FSC) conducted an unscheduled audit, which found flaws in transaction monitoring processes and user identity validation.According to the FSC, Bithumb failed to ensure proper monitoring of suspicious transactions and did not fully comply with requirements for collecting and storing customer data. As a result, the regulator is considering temporarily suspending the platform for up to six months, which could affect more than 2 million users and a significant volume of daily trading transactions.South Korean authorities emphasize that compliance with AML and KYC standards is key for cryptocurrency platforms to operate in the country. In recent years, regulators have tightened requirements for exchanges to prevent digital assets from being used for illegal purposes. If violations are confirmed, Bithumb will be required to implement additional controls and conduct an internal audit.Experts note that the regulator's decision may become an important signal for the entire market and push other platforms to revise their own security and compliance procedures.