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Photo courtesy of Bithumb |
[Alpha Biz= Kim Jisun] South Korean cryptocurrency exchange Bithumb has received advance notice of major regulatory sanctions from financial authorities over alleged violations of anti–money laundering (AML) obligations.
According to financial industry sources on Sunday, the Financial Intelligence Unit (FIU) under the Financial Services Commission last month notified Bithumb of proposed disciplinary measures for violations of the Act on Reporting and Use of Certain Financial Transaction Information.
The proposed sanctions include a six-month partial suspension of business operations and disciplinary action against the company’s chief executive.
The measures stem from findings that Bithumb continued transactions with overseas virtual asset service providers that had not been properly registered with South Korean authorities, while also failing to adequately fulfill customer due diligence requirements.
The FIU has also imposed sanctions on other major domestic exchanges over similar issues. Dunamu, operator of the Upbit exchange, was given a three-month partial business suspension and a fine of 35.2 billion won ($26 million). Korbit received a 2.73 billion won fine and an institutional warning.
Regulatory review procedures are still ongoing for two other exchanges, Gopax and Coinone.
The notice sent to Bithumb is not a finalized decision but part of an administrative process that allows the company to review the proposed measures and submit explanations or corrective plans.
The FIU is expected to convene a sanctions review committee later this month to determine the final disciplinary action.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
