The post South Korea Proposes 6-Month Partial Ban on Bithumb appeared on BitcoinEthereumNews.com.

TLDR South Korea’s Financial Intelligence Unit issued a preliminary notice proposing a six-month partial suspension of Bithumb. Regulators said Bithumb conducted transactions with unregistered overseas virtual asset businesses. Authorities also cited failures in enforcing certain Know Your Customer procedures. The proposed suspension would restrict virtual asset transfers for newly registered users only. Existing users would still deposit and withdraw funds and continue trading on the platform. South Korean regulators have moved against Bithumb over alleged anti-money laundering failures. The Financial Intelligence Unit issued a preliminary notice that proposes a six-month partial business suspension. However, the measure would limit only certain services for newly registered users if authorities confirm it. Bithumb Receives Preliminary Sanction Notice From FIU The Financial Services Commission’s Financial Intelligence Unit sent the notice under the Act on Reporting and Using Specified Financial Transaction Information. The FIU oversees anti-money laundering compliance for cryptocurrency firms operating in South Korea. Regulators said Bithumb continued transactions with overseas virtual asset businesses that lacked local registration. Authorities also said the exchange failed to enforce certain Know Your Customer procedures. As a result, the FIU proposed a six-month partial suspension and disciplinary action against the chief executive. However, officials stated that the decision remains subject to review before final confirmation. The proposed restriction would apply only to virtual asset transfers by newly registered users. Therefore, existing customers would still deposit and withdraw Korean won and cryptocurrencies and continue trading. Local media reported that the FIU plans to hold a sanctions deliberation committee later this month. Officials will determine the final penalty during that review session. The FIU may adjust the scope or duration of the sanction after discussions. Until then, Bithumb continues normal operations for current users. Regulators Tighten Oversight After Prior Enforcement Actions South Korean authorities have increased oversight of digital asset…

---

Filed under: News - @ March 9, 2026 11:27 pm