The six-month partial operating ban imposed on cryptocurrency exchange Bithumb in South Korea was canceled by the decision of the Seoul Administrative Court. According to South Korea-based agency Yonhap, Seoul Administrative Court 2nd Administrative Chamber Judge Gong Hyeon-jin accepted Bithumb’s request for a stay of execution on the day the application was submitted.
Sanctions against Bithumb
Sanctions against Bithumb came to the agenda after the decision of the country’s Financial Information Unit (FIU) in March. The exchange was accused of major violations of local anti-money laundering rules, with 6.65 million transactions. These include not completing the authentication processes in 3.55 million transactions and not making the necessary blocks in 3.04 million transactions. During the same period, Bithumb was fined 36.8 billion won ($24.6 million) and the exchange was required to suspend operations in certain areas for six months.
In the statement made by the Financial Services Commission in March, it was stated that the sanctions were imposed due to practices contrary to the Specific Financial Transaction Information Reporting and Use Act. However, there is no clear statement yet as to whether the court has suspended the $24.6 million fine decision.
Strict control from South Korea to the crypto market
Bithumb’s sanctions come at a time when South Korean regulators are tightening control over the crypto asset market. In 2025, the same regulatory body, the FIU, similarly imposed a three-month partial operating ban and a 35.2 billion won fine on Dunamu, the operator of Upbit, the largest exchange in the country. On the other hand, another exchange, Korbit, also faced a lower fine of 2.73 billion won. The institution also directed various corporate warnings to these exchanges.
Bithumb was founded in 2014 and today stands out as one of South Korea’s largest cryptocurrency exchanges in terms of transaction volume. According to CoinGecko data, the stock market has witnessed intense transaction traffic, especially in recent years.
Personal data review and latest developments in the industry
While Bithumb’s continued operations stand out as an important development for the sector, investigations regarding the protection of personal data continue in the country. South Korea’s Personal Information Protection Commission is investigating whether various platforms, including Upbit and Bithumb, are sharing order books with companies abroad.
This decision, specifically for Bithumb, came after it was revealed that the company had mistakenly sent billions of dollars worth of bitcoin to customers in recent months. In light of these events, the company’s legal processes and investigations regarding data sharing are being closely monitored.
The fact that other trading platforms in the industry are facing similar inspections and penalties shows that South Korea’s regulatory approach towards the crypto market is becoming increasingly strict.
In the statement made by FIU, it was stated that Bithumb did not sufficiently comply with the identification procedure in transactions and did not carry out the necessary blocking, therefore heavy sanctions were imposed.
Although Bithumb has been released from the partial activity ban for now, it is expected that the process may witness new developments regarding the fine in the coming days.
