South Korean cryptocurrency exchange Bithumb has been served a preliminary notice of sanctions, which may compel it to partially suspend its operations for a period of six months.
According to local media reports, the notice was issued by the Financial Intelligence Unit, which operates under the country’s Financial Services Commission. The FIU monitors whether crypto companies follow anti-money laundering rules framed under South Korea’s financial transaction laws.
Regulators said that Bithumb continued to carry out transactions with overseas crypto businesses not registered in South Korea. Authorities also said the exchange did not properly follow some Know Your Customer procedures. As a result of this, the FIU has proposed a six-month partial suspension and disciplinary action against the company’s chief executive.
The restriction, when approved, will only apply to virtual asset transfers made by newly registered users. Existing users will still be able to deposit and withdraw Korean won and cryptocurrencies and continue trading on the platform.
However, the decision is not final yet. The FIU will hold a sanctions committee meeting later this month to review the case and decide the final penalty.
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