South Korea has taken harsh measures against cryptocurrency exchange Bithumb, including a $24 million fine and a six-month partial suspension of its services.
Authorities found millions of violations of anti-money laundering laws, which led to the imposition of the fine. Authorities claim that Bithumb failed to properly verify the identification of its clients and did not forbid certain transactions that should have been prohibited.
Over 6.6 million violations were reported during inspections. While existing users are still able to trade and withdraw money, new users will be subject to limitations as part of the punishment.
Senior company officials have also been penalised. The CEO received a warning, and another important executive received a six-month suspension.
This measure is a part of a larger South Korean offensive on cryptocurrency exchanges. To increase transparency and stop illicit activity in the industry, regulators have been tightening regulations.
The case shows that there is growing pressure on cryptocurrency platforms across the globe to adhere to stringent compliance requirements or face severe fines.
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