South Korea has fined crypto exchange Bithumb 36.8 billion won ($24.5 million) and imposed a six-month partial business suspension after uncovering widespread anti-money laundering violations.
Regulators found around 6.65 million breaches during an inspection, including failures in customer verification, transaction controls and record-keeping requirements.
Authorities also identified 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers, breaching local AML rules.
Under the sanctions, Bithumb will be barred from processing external crypto transfers for new customers from March 27 to Sept. 26, though existing users remain unaffected.
The Financial Intelligence Unit said it had repeatedly warned the exchange to stop dealing with unregistered firms, but Bithumb failed to implement effective controls. Following the announcement the Bithumb share price was unavailable.
The penalty marks the largest fine imposed on a South Korean crypto exchange, as regulators intensify oversight of AML compliance across the sector.
Other exchanges including Upbit and Korbit have also faced fines and restrictions in recent years, highlighting a broader regulatory crackdown on crypto platforms in South Korea.