Virtual asset exchange Bithumb is expected to face heavy sanctions from the financial authorities, including a "six-month partial business suspension," for violating anti-money-laundering obligations.
According to the virtual asset industry on the 9th, the Financial Intelligence Unit (FIU) under the Financial Services Commission recently gave Bithumb prior notice of sanctions for violations of the Act on Reporting and Using Specified Financial Transaction Information. Authorities are said to have determined that Bithumb continued transactions with unreported overseas virtual asset business operators, which constituted a violation.
The heavy sanctions by the authorities are said to include: ▲ a six-month partial business suspension ▲ a reprimand warning for the chief executive officer ▲ dismissal of the reporting officer. The industry also speculates the fines could reach into the tens of billions of won. The main reason for the fines is that Bithumb failed to fulfill its know-your-customer (KYC) obligations.
A Bithumb official said, "Nothing has been finalized yet, and the sanctions will be finalized at the Sanctions Review Committee on the 16th," adding, "The six-month partial business suspension is expected to apply only to new users, not existing transaction users."