Bithumb, one of South Korea’s largest exchanges, received a preliminary sanction notice that could result in a partial suspension of operations for six months, according to reports from local media.
The notification comes from the Financial Intelligence Unit (FIU) of the Financial Services Commission, the body responsible for overseeing anti-money laundering compliance on digital asset platforms under the Act on Reporting and Using Specified Financial Transaction Information.
According to the notice, Bithumb allegedly conducted transactions with foreign virtual asset platforms not registered in South Korea and failed to apply certain Know Your Customer (KYC) procedures.
The FIU also proposed disciplinary measures against the Bithumb’s chief executive officer. The proposed restriction would only affect virtual asset transfers made by newly registered users and would have no impact on existing clients’ operations, who could continue depositing, withdrawing won and cryptocurrencies, and trading on the platform as usual.
The decision is not yet final. The FIU plans to convene a sanctions deliberation committee before the end of March to determine the final penalty.
Source: https://www.news1.kr/finance/blockchain-fintech/6095400
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